Rattler Midstream LP, a Subsidiary of Diamondback Energy, Inc., Announces Strategic Midland Basin Gas Gathering & Processing Joint Venture

Rhea-AI Summary

Rattler Midstream LP (NASDAQ: RTLR) has completed a significant acquisition of a majority interest in a Midland Basin gas gathering and processing company through a joint venture with a private investment fund, investing approximately $104 million in cash for a minority stake. The assets include a gas gathering system and six processing plants with a capacity of 925 MMcf/d. This strategic move underlines the partnership with Diamondback Energy, crucial for expanding Rattler's midstream capabilities in the Midland Basin.

Positive

• Acquisition of major interest enhances Rattler's gas gathering and processing capabilities.
• Joint venture supports expanded operations in the growing Midland Basin.
• Investment of approximately $104 million indicates strong financial commitment.

Negative

• None.

MIDLAND, Texas, Oct. 12, 2021 (GLOBE NEWSWIRE) -- On October 5, 2021 Rattler Midstream LP (NASDAQ: RTLR) (“Rattler”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), and a private affiliate of an investment fund, completed an acquisition of a majority interest in a Midland Basin gas gathering and processing company from West Texas Gas, Inc. and its affiliates through a joint venture. Rattler invested approximately $104 million in cash to acquire a minority interest in the joint venture. The joint venture’s assets primarily consist of an interconnected gas gathering system and six major gas processing plants servicing the Midland Basin with 925 MMcf/d of total processing capacity with additional gas gathering and processing expansions planned.

“This deal highlights the strategic relationship between Diamondback and Rattler as this is the sixth significant joint venture with Diamondback as a major customer in which Rattler has participated. With Diamondback deploying a majority of its development capital in the Northern Midland Basin, expanded gas gathering and processing capacity and an enhanced relationship with a crucial midstream partner with strong financial backing will support Diamondback’s upstream development. For Rattler, the joint venture is an attractive opportunity to invest in a growing gas gathering and processing system in the core of the Midland Basin,” stated Travis Stice, Chief Executive Officer of Rattler’s General Partner.

About Rattler Midstream LP

Rattler Midstream LP is a Delaware limited partnership formed by Diamondback Energy to own, operate, develop and acquire midstream and energy-related infrastructure assets. Rattler owns crude oil, natural gas and water-related midstream assets in the Permian Basin that provide services to Diamondback Energy and third party customers under primarily long-term, fixed-fee contracts. For more information, please visit www.rattlermidstream.com.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.  For more information, please visit www.diamondbackenergy.com.

Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@rattlermidstream.com

FAQ

What is Rattler Midstream's recent acquisition related to?

Rattler Midstream LP's recent acquisition involves a majority interest in a Midland Basin gas gathering and processing company.

How much did Rattler Midstream invest in the acquisition?

Rattler Midstream invested approximately $104 million in cash for a minority interest in the joint venture.

What capacity do the processing plants acquired by Rattler Midstream have?

The processing plants acquired have a total processing capacity of 925 MMcf/d.

What is the strategic significance of the acquisition for Rattler Midstream?

The acquisition enhances Rattler's relationship with Diamondback Energy and supports expanded gas gathering and processing capacity.