Transaction Details: 

EnCap Flatrock Midstream has entered into an agreement to sell Lucid Energy Group II to a JV controlled by Riverstone and Goldman Sachs for $1.6 billion in cash. Lucid's operations are focused in the Delaware Basin.

Lucid II will retain its name and operate as a Riverstone and Goldman Sachs MBD portfolio company. The members of the Lucid management team will remain in their current roles with Lucid II.

Lucid II was formed in December 2015 and acquired Agave Energy Company on September 1, 2016.

The Lucid II assets included in the transaction are located in the core of the northern Delaware Basin and are known as the South Carlsbad Natural Gas Gathering and Processing System and the Artesia Natural Gas Gathering and Processing System. Assets include approximately 1,700 miles of natural gas gathering pipelines and 585 million cubic feet per day (MMcf/d) of processing capacity, with an additional 200 MMcf/d under construction and scheduled to be in service by mid-2018. Lucid II serves the region’s leading supermajor and independent oil and gas producers, which together have made long-term dedications and production volume commitments from approximately 450,000 acres spanning Eddy and Lea counties in southeast New Mexico.

The transaction includes committed debt financing provided by Jefferies LLC. Closing is expected in the first quarter of 2018.

Permian - Delaware Basin Deal Activity In Last 12 Months