DALLAS--(BUSINESS WIRE)--Lucid Energy Group (“Lucid”) today announced the company has executed a new long-term natural gas gathering and processing agreement with Marathon Oil Permian LLC, a subsidiary of Marathon Oil Company (NYSE: MRO) (“Marathon”). Under the new agreement, Lucid now provides midstream services to Marathon under a long-term acreage dedication for all of Marathon’s operated acreage in Lea County, New Mexico, and a portion of Marathon’s operated acreage in Eddy County, New Mexico. To serve Marathon’s growing production, Lucid will significantly expand its existing gathering and compression infrastructure network.
Lucid also announced it is preparing to commission a new cryogenic processing plant at its Red Hills Natural Gas Processing Complex in Lea County. Known as Red Hills III, the new plant has the capacity to process 200 million cubic feet per day (MMcf/d) and is expected to come into service in October 2018. Red Hills III will provide additional processing capacity in support of near-term production from new commercial agreements, including the Marathon agreement. The plant is Lucid’s fifth cryogenic plant in southeast New Mexico and will bring Lucid’s total processing capacity in the Delaware Basin to 750 MMcf/d.
“Marathon is a premier producer and a valued customer that we are fortunate to serve,” said Lucid CEO Michael J. Latchem. “We are excited to see results from the world-class Delaware Basin continue to improve because of talented operators like Marathon. We are highly focused on staying in front of our customers’ drilling programs with new infrastructure and facilities that preserve the high standard of service producers have come to expect from Lucid.”
About Lucid Energy Group
Lucid Energy Group is the largest privately held natural gas processor in the Delaware Basin, providing the full range of gas midstream services to more than 50 customers in New Mexico and West Texas. Lucid is supported by growth capital commitments from a joint venture formed by Riverstone Global Energy and Power Fund VI, L.P., an investment fund managed by Riverstone Holdings LLC (“Riverstone”), and investment funds managed by the Merchant Banking Division of The Goldman Sachs Group Inc. (“Goldman Sachs MBD”). Please visit www.lucid-energy.com for more information.
About Riverstone Holdings LLC
Riverstone Holdings LLC is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $38 billion of capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London, Houston and Mexico City, Riverstone has committed over $37 billion to more than 150 investments in North America, Latin America, Europe, Africa, Asia and Australia. Visit www.riverstonellc.com for more information.
About Goldman Sachs Merchant Banking Division
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division is the primary center for the firm’s long-term principal investing activity. With nine offices across seven countries, Goldman Sachs MBD is one of the leading private capital investors in the world with equity and credit investments across corporate, real estate, and infrastructure strategies. Since 1986, the group has invested approximately $180 billion of levered capital across a number of geographies, industries and transaction types.
