Rattler Midstream’s filings said its assets were “contributed by Diamondback” in June and include 528 miles of pipeline across the Midland and Delaware basins. (Source: Hart Energy/Shutterstock.com)
As takeaway capacity continues to constrict Permian Basin oil producers, Diamondback Energy Inc. (NASDAQ: FANG) is looking to its own means to move crude out by pushing its midstream assets into the public spotlight through an IPO.
In early August, Diamondback subsidiary Rattler Midstream filed regulatory documents to take its crude, natural gas and water infrastructure company public. The company also swung a deal enabling it to buy a bigger piece of the EPIC pipeline that will stretch to Corpus Christi, Texas, from Midland, Texas.
Diamondback is among several companies, including Apache Corp. (NYSE: APA) and Exxon Mobil Corp. (NYSE: XOM) subsidiary XTO Energy, to address takeaway capacity through a variety of agreements and joint ventures.