DALLAS--(BUSINESS WIRE)--Lucid Energy Group (“Lucid”) today announced the company has executed a new long-term natural gas gathering and processing agreement with XTO Energy Inc. (“XTO”), a subsidiary of ExxonMobil. Under the new agreement, XTO will deliver natural gas production from a portion of its leasehold position in southeastern New Mexico to Lucid’s South Carlsbad gas gathering and processing system. The agreement provides XTO with firm processing capacity and enables deliveries of gas and natural gas liquids to ExxonMobil’s downstream and chemical manufacturing sites on the U.S. Gulf Coast. Lucid’s system in the northern Delaware Basin currently consists of more than 2,000 miles of pipeline spanning five counties in New Mexico and Texas.
Lucid also announced it is underway with the development of its next large cryogenic processing plant at its flagship Red Hills Natural Gas Processing Complex in Lea County, New Mexico. The Red Hills V plant will have the capacity to process 230 million cubic feet of natural gas per day (MMcf/d) and will bring the total processing capacity of Lucid’s natural gas processing franchise in the northern Delaware Basin to 1.2 billion cubic feet per day. Lucid expects to commission Red Hills V in the second quarter of 2020. The expansion will follow the anticipated commissioning of the 230 MMcf/d Red Hills IV plant in October 2019.
“We have continued to grow our relationship with XTO in the northern Delaware Basin since its entry into New Mexico,” said Lucid CEO Mike Latchem. “Lucid’s assets are strategically positioned for XTO’s development plans and complement what its affiliates are planning for midstream infrastructure within the basin and out of the basin to the downstream markets.”
About Lucid Energy Group
Lucid Energy Group is the largest privately held natural gas processor in the Delaware Basin, providing a full range of gas midstream services to more than 50 customers in New Mexico and West Texas. Lucid is supported by 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 $39 billion of capital raised. Riverstone conducts buyout and 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 160 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 raised approximately $186 billion of levered capital across a number of geographies, industries and transaction types.