Delaware Basin Subsidiary Sold in Energy Firm Deal
In January of 2018, Lucid Energy announced that it would sell part of the company to the ownership group of Riverstone Global Energy and Goldman Sachs. The deal was worth close to $2 billion. The sell is expected to close in early 2018, but still has to be approved by the government and includes guaranteed debt financing by Jefferies LLC. Lucid ll will keep its name and management team but operate as a portfolio company under the new owning group.
The major assets of the deal are in the Delaware Basin and include nearly 1,700 miles of natural gas pipelines capable of delivering over 585 million cubic feet per day. Lucid is the leading supplier to major and independent oil and gas companies. The company was started in December of 2015 and in less than two years expanded its processing capacity by over 750%. Lucid president credited EnCap Flatrock Mainstream with the companies early success and quick expansion. The South Carlsbad location where Lucid operates has great growth potential and is expected to increase capacity under the new ownership group. Despite its fast expansion, the site is a leader in safety and efficiency. EnCap is very happy with the transaction and is excited about its partnership with Lucid moving forward.
Lucid used the legal services of Vinson and Elkins LLP for the sale of the company. Lucid is the biggest privately owned natural gas processor in the Permian Basin and its processing capacity exceeds 1 billion cubic feet and pipelines of over 2,400 miles.
Riverstone Holdings LLC is an energy and power investment company founded in 2000 by Pierre Lapeyre and David Leuschen, that has close to $38 billion in capital. The company does a wide variety of growth and capital investments in the energy sector. The company has offices in the United States and all over the world.