Rattler buys stake in Midland Basin gas gathering and processing JV

Oct. 12, 2021 4:26 PM ETDiamondback Energy, Inc. (FANG)By: Carl Surran, SA News Editor6 Comments

Working Pumpjacks On Sunset

imaginima/E+ via Getty Images

  • Diamondback Energy (NASDAQ:FANG) subsidiary Rattler Midstream (NASDAQ:RTLR) says it invested $104M to acquire a minority interest in a joint venture that bought a majority stake in a Midland Basin gas gathering and processing company from West Texas Gas Inc.
  • The joint venture's assets consist mostly of an interconnected gas gathering system and six major gas processing plants servicing the Midland Basin with 925M cf/day of total processing capacity, with additional gas gathering and processing expansions planned.
  • Rattler says the deal highlights its strategic relationship with Diamondback, as it is the sixth significant joint venture with Diamondback as a major customer in which Rattler has participated.
  • Diamondback's history of profitability is in the top tier of the industry, and its cash margin is "seldom equaled," Long Player writes in a bullish analysis posted recently on Seeking Alpha.

Recommended For You

Comments (6)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.