Daily News: January 9, 2019

Wells Fargo Agents $30MM Upsize to Canyon Midstream Revolver

Wells Fargo served as administrative agent on an amendment to Canyon Midstream Partners II’s revolving credit facility, increasing the borrowing capacity from $70 million to $100 million.

Other banks participating in the facility include Amegy Bank and Capital One.

The revolver will be used by Canyon’s subsidiary Redcliff Midstream in connection with an expansion project at the company’s recently constructed cryogenic gas processing facility in Woodward County, OK.

When the project is completed in the second quarter of 2019, the Redcliff Plant’s processing capacity will be 240 million cubic feet per day (MMcf/d), representing a 20% increase over current plant capacity. The Redcliff Plant processes gas volumes transported on an extensive pipeline system which includes over 180 miles of gathering pipelines and five field compressor stations in Oklahoma’s Woodward, Dewey, Blaine and Canadian counties.

“We appreciate the support and confidence demonstrated by our lender group with the expansion of the Redcliff revolving credit facility,” said Michael Walsh, president and CEO of CMP2. “We will continue to develop Redcliff’s assets and infrastructure to provide efficient and reliable midstream services in support of growing gas volumes as producers in the STACK play shift to multi-well pad development.”

CMP2 is a Houston-based company formed to acquire, develop and operate midstream energy companies and assets. CMP2 is backed by $200 million in equity commitments from Kayne Anderson Energy Fund VII and the CMP2 management team.