IRVING, TEXAS, December 6, 2016 – Medallion Midstream, LLC and its affiliate, Medallion Midstream Services, LLC, (Medallion) today announced that it has entered into a letter of intent to construct a new Delaware Basin crude oil pipeline system to provide crude oil gathering and transportation services for Parsley Energy (NYSE: PE) (Parsley). The new pipeline will be anchored by Parsley’s long-term dedication to Medallion of approximately 35,000 acres held under lease and/or mineral interest in Pecos and Reeves Counties, Texas.
Medallion’s Delaware Basin pipeline system will initially consist of approximately 45 miles of 16-inch mainline and approximately 25 miles of smaller diameter gathering pipelines along with a crude oil station in Pecos County consisting of crude oil storage and truck unloading facilities. The pipeline, which is expected to have an initial capacity of 100,000 barrels per day, will originate within the Parsley leases and will end in Crane County, Texas at an interconnection into Medallion Pipeline Company’s existing 600-mile Midland Basin header system, accessing multiple Permian Basin long-haul take away pipelines. The parties expect to finalize and sign a definitive agreement in the first quarter of 2017 and the new crude oil pipeline is expected to start initial service in June 2017.
“We are honored that Parsley has chosen Medallion to provide crude oil gathering and transportation services for its core Delaware Basin acreage,” said Medallion Chief Executive Officer Randy Lentz. “Parsley is one of the most recognized and dynamic companies in the energy space today and we are excited to continue our partnership with them.”
Medallion is an Irving, Texas based full services midstream provider specializing in the construction and operation of natural gas and crude oil midstream infrastructure. Medallion delivers customized, turnkey, oil and gas solutions and exceptional customer service. Medallion is a portfolio company of The Energy & Minerals Group. To learn more about Medallion, please visit www.medallionmidstream.com.
About The Energy & Minerals Group:
The Energy & Minerals Group (EMG) is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $14.6 billion of regulatory assets under management and approximately $9.8 billion in commitments have been allocated across the energy sector since inception.
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