Emerging Capital Partners (ECP) has agreed to divest Sendero Midstream Partners to Crestwood Midstream Partners, an affiliate of Crestwood Equity Partners, for an enterprise price of $600m in cash.
Crestwood Equity Partners owns and operates midstream assets primarily located in the Williston Basin, Delaware Basin, Powder River Basin, Marcellus Shale and Barnett Shale.
Sendero is a gas gathering and processing business located in Eddy County, New Mexico.
Under ECP’s ownership, Sendero has developed 350MMcf/d of gas processing capacity and 140 miles (225km) of natural gas pipelines.
The transaction is expected to close in July 2022, subject to approval under the Hart-Scott-Rodino Act and other customary closing conditions.
ECP managing partner Pete Labbat said: “I would like to thank the entire Sendero team for their unwavering commitment to developing a first-class gathering and processing system in the Permian Basin and for repositioning the business for growth and success coming out of the 2020 downturn.
“We are excited for Sendero to partner with Crestwood, a premier midstream operator, and are confident that the company will benefit from Crestwood’s strong track record.”
Sendero is a private energy company that offers full-service, advanced midstream solutions throughout the Northern Delaware Basin.
It currently operates two cryogenic processing plants with a combined capacity of 350MMcf/d and related gathering and compression facilities in the Northern Delaware Basin.
Established in 2005, ECP is a Pan-African private equity firm that has been investing in energy transition, electrification and decarbonisation of infrastructure assets.
It invests in power generation, renewables and storage solutions, environmental infrastructure and efficiency & reliability assets facilitating the energy transition.
ECP has a team of 61 people with 500 years of collective industry experience, deep expertise and extensive relationships, and represents more than $45bn of enterprise value.
Sendero chief executive officer Joe Griffin said: “We are proud of our partnership with ECP, one of the leaders in the energy infrastructure space, and appreciate the team’s engagement and support in growing the business into what it is today.
“I would like to thank all of our incredibly hard-working Sendero employees and I am grateful to have worked with such a special group.”
