Ares Management, L.P. (ticker ARES) and ARM Energy Holdings, LLC have partnered up to develop Salt Creek Midstream, LLC in the Delaware Basin.
The company is owned by funds managed by the Ares Private Equity Group and ARM Energy. ARM Midstream Management, LLC, a subsidiary of ARM Energy, will serve as operator of the project.
260 MMcf/d of expandable processing capacity
Once fully operational, Salt Creek will primarily be comprised of multiple cryogenic processing facilities, as well as gas and crude gathering pipelines, compression and treating facilities. The initial phase of the project is expected to be commissioned in April 2018, and by the end of 2018, Salt Creek is expected to have 260 MMcf/d of processing capacity, with additional expansion investments planned as producers are added to the system. Salt Creek has secured commitments for more than 250,000 dedicated acres from multiple Delaware Basin producers.
Salt Creek recently closed its $350 million term loan facility. The proceeds will be used to fund further development and expansion. Phases of Salt Creek’s development plan will continue to enter service throughout 2018.
