The $1.75 billion sale of Brazos Midstream’s Delaware Basin subsidiaries to Morgan Stanley Infrastructure is another big step for the sector as it hustles to keep up with producers’ soaring output in the Permian. And deals like this are likely to keep coming.
“With the shortage of natural gas pipeline capacity out of and around the Permian, it looks like Brazos was in a good position to command good money for its assets in the Delaware Basin,” said Greg Haas, director of integrated oil and gas for Stratas Advisors. “The long-founded theory, ‘buy low, sell high’ seems to apply today in this case.”
The Permian is showing itself to be rich in both hydrocarbons and transactions.