Permian Basin midstream provider Salt Creek Midstream (“Salt Creek” or the “Company”), a full-service natural gas gatherer and processor, announced today the Company has completed the issuance of a new $980 million first lien term loan due 2031. The company used the net proceeds from the Term Loan to repay its existing first and second lien term loans due 2027. As part of the transaction, the Company entered into a new agreement for a $35 million, super-priority revolving credit facility due 2031. The facility will remain undrawn at close and includes a $40 million accordion feature. The refinancing marks a major milestone for the Company and reflects the transformation of the Salt Creek business, which is further underscored by the Company’s B2 and B credit ratings from Moody’s and S&P, respectively.
“Salt Creek has continued its transformation on the heels of significant growth in volume and financial performance. This successful refinancing highlights the exceptional performance of the business and provides additional financial strength to continue pursuing the Company’s expansion plans alongside providing best-in-class service to its customers,” said John Bookout, Salt Creek’s Chief Executive Officer.
Jefferies LLC served as Lead Left Arranger.
Salt Creek Midstream Provides Commercial and Operational Update
Salt Creek Midstream today announced a commercial and operational update on the business. Recently signed business development has transformed the Company and the business is now underpinned by long-term acreage dedications covering approximately 300,000 dedicated acres from over 20 top-tier Permian customers. Additionally, ~75% of expected throughput in 2027 is expected to be generated from investment grade counterparties with ~35% of expected 2027 throughput supported by volume commitments from customers.
Salt Creek’s portfolio has evolved to include significant exposure to the Delaware Woodford, with approximately 40,000 dedicated acres in the liquids-rich core Woodford fairway as well as significant additional exposure to prospective areas. Salt Creek’s Woodford volumes are expected to eclipse 200 million cubic feet per day (“MMcf/d”) by the end of 2027 and Salt Creek has greater than 600 future well locations within the Woodford.
The Company recently completed the strategic expansion of its high-pressure gathering capacity by installing a 13-mile, 20-inch pipeline loop along its existing eastern trunkline system. The line loop increases available gathering capacity out of Lea, Winkler and Loving counties by up to 40%.
Heading into 2027, the company plans to further expand gathering and compression infrastructure by installing an additional 80 MMcf/d of compression station capacity and 20,000 horsepower of company-owned low-pressure gathering compression to support near-term producer production growth. Including these compression additions, the Company will have ~80,000 horsepower of owned low-pressure gathering compression across 20 compressor station sites.
Salt Creek Midstream expects to achieve full processing utilization in the first half of 2027. Long-lead items for an additional cryogenic processing plant for the Pecos Processing Complex have been ordered and the Company plans to reach a Final Investment Decision (“FID”) for up to an additional 300 MMcf/d by the end of 2026. The additional processing train, Pecos IV, will be installed in Reeves County, Texas, and will be Salt Creek’s fourth cryogenic processing train at its Pecos Complex. Pecos IV would be commissioned and operational in the second half of 2028 and would increase Salt Creek’s installed processing capacity to up to 900 MMcf/d depending on ultimate FID sizing. The Pecos Processing Complex site is further expandable up to 1.2 billion cubic feet per day (“Bcf/d”) and has secured the associated grid power to support the full expansion of the complex in the future. In conjunction with Salt Creek’s customer growth and the timing of expected capacity expansions, Salt Creek has entered into strategic offload contracts to secure firm processing capacity as a bridge to the Company’s planned capacity expansions. These offloads are expected to be in-service by the end of the first quarter of 2027.
About Salt Creek
Salt Creek Midstream is an independent energy company formed in 2018 offering a full suite of innovative midstream and downstream solutions for producers operating in the Delaware Basin. Salt Creek has grown into the largest pure-play privately-owned gas gatherer and processor in the Delaware Basin. Today, we operate close to 600 miles of natural gas and natural gas liquids pipelines spanning the 8 largest producing counties in the Delaware Basin; a 600 MMcf/d+ natural gas processing complex with expansion plans up to 900 MMcf/d by the 2H 2028; and a 300,000 Bbl/d NGL header system. But we are more than just an energy company. At the heart of our operations is a commitment to safety, reliability, integrity, and customer service.
The information contained in this press release is available on our website at www.saltcreekmidstream.com
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