Lucid Energy Group announced that the company finalized a $200 million revolving credit facility. The additional financing will be used to support Lucid’s aggressive growth strategy in the Permian Basin. Together with private equity commitments from EnCap Flatrock Midstream and management, the credit facility provides Lucid with $425 million in total available financing.

Wells Fargo Securities and Cadence Bank participated in the four-year credit arrangement and acted as joint lead arrangers. Thompson & Knight served as legal counsel to Lucid Energy Group with partner John W. Rain leading the firm’s legal team from its Dallas office. Vinson & Elkins, led by Erec R. Winandy, a partner in the firm’s Dallas office, represented the lending group.

Lucid increased its capital sources to support the rapid expansion of its pipeline gathering system and natural gas processing facilities in West Texas, which serve production from the Midland Basin’s Wolfcamp and Cline Shale formations. Lucid’s system includes more than 300 miles of high and low-pressure pipeline delivering liquids-rich natural gas to two separate cryogenic processing complexes in Sterling and Irion counties. In March 2014, the company commissioned a third cryogenic processing plant and a nitrogen rejection plant in Sterling County. The new plant brings Lucid’s total processing capacity to 120 million cubic feet per day.

Lucid’s gathering and processing facilities are supported by long-term acreage dedications and volume commitments from more than a dozen oil and gas producers including, Apache Corporation APA, Devon Energy and EP. Acreage dedications to Lucid exceed 800,000 acres across an eight-county area of the Midland Basin and include Wolfcamp Shale production centered in Irion, Reagan and Crockett counties and Cline Shale production centered in Sterling County.

“We are pleased with the progress our group has made to serve the needs of producers in the Wolfcamp and Cline,” said Michael Latchem, managing director and CEO of Lucid. “The additional financing is a testament to that progress and the outstanding response we’ve had from producers in the Midland Basin. Our team is looking forward to the continued success and development of our crude oil gathering business and to playing an important supporting role in the development of these world-class oil resource plays.”

Dallas-based Lucid Energy Group is a midstream services company formed to develop and operate new oil and gas infrastructure and related facilities.