Midstream provider Lucid Energy Group has secured a preferred equity commitment of up to $250 million from Magnetar Capital, a leading alternative asset manager with assets under management of $13.8 billion, Lucid said May 2 in a statement.
Magnetar’s investment will be used for ongoing expansion of Lucid’s infrastructure build-out in the Permian Basin and will be specifically used to support the development of its natural gas gathering and processing system in the Delaware Basin.
“We are very excited to partner with Magnetar, a deeply experienced and value-added energy investor,” said Lucid President and CEO Mike Latchem. “This important transaction, combined with the existing support of EnCap Flatrock Midstream, allows us to continue to aggressively expand our Delaware Basin franchise and offer large-scale, best-in-class service to producers in the region.”
Eric Scheyer, Magnetar’s head of energy, praised Lucid’s management team.
“Lucid has an outstanding track record of developing high-quality assets in the Permian Basin and continues to do an excellent job of executing on its expansion plans,” he said. “We believe that Magnetar’s flexible investment approach is well matched to support Lucid’s long-term strategic plans, and we look forward to expanding our relationship with the Lucid team.”
Jefferies LLC acted as Lucid’s financial adviser in connection with the transaction. Vinson & Elkins LLP acted as legal counsel to Lucid, and Weil, Gotshal & Manges LLP served as legal adviser to Magnetar.