Daily News: October 31, 2018

Deutsche Bank Closes $650MM Term Loan for Salt Creek Midstream


Deutsche Bank closed a four-year, $650 million term loan for Salt Creek Midstream, a portfolio company owned by funds managed by the Private Equity Group of Ares Management and ARM Energy Holdings.

The proceeds will be used to fund the continuing development and expansion of Salt Creek’s business in the Delaware Basin, specifically, the completion of a second 200 Mmcf/d cryo processing plant and gas pipelines; crude gathering and terminalling infrastructure growth and expansion of Salt Creek’s water gathering and disposal business.

“We are extremely pleased that Deutsche Bank has again chosen to underwrite our Salt Creek franchise and appreciate its confidence in the team and our expansion opportunities,” said ARM Energy CEO Zach Lee. “The financing will support our continuing work to build world-class midstream assets, which we expect will provide decades of high-return drilling inventory, driving additional project growth and scale in a rapidly expanding basin as well as downstream market solutions for residue gas, NGLs and crude.”

Formed in 2017 and headquartered in Houston, Salt Creek Midstream is a full service midstream provider in the Delaware Basin, offering gas and crude gathering, compression, cryogenic processing and treating services, as well as water gathering and disposal services.

Headquartered in Houston, with offices in Calgary, Denver, Midland, and Pittsburgh, ARM Energy Holdings is a producer services firm, active in every sector of the energy value chain across all major North American oil and gas basins.