Brazos Midstream announced its subsidiary, Brazos Midland, has expanded its senior credit facility to $1.1 billion, up from $225 million, increasing available commitments from a syndicate of banks as the company continues to grow its natural gas gathering and processing footprint in the Midland Basin.
The Fort Worth, Texas-based midstream operator said the expanded borrowing capacity is intended to support ongoing system expansion in one of the most active oil and gas producing regions in the U.S. Brazos also pointed to support from its equity partners as part of the broader capital plan for its Midland business.
The bank group was led by BOK Financial as lead arranger and administrative agent, with Bank OZK, Citizens Bank, Fifth Third Bank, JPMorgan Chase Bank, KeyBanc Capital Markets, and The Huntington National Bank serving as joint lead arrangers. Harris Finley Bogle advised Brazos as legal counsel, while Baker Botts represented the lender group.
Brazos described itself as the largest privately held midstream platform in the Permian Basin on a combined basis. The company said its infrastructure includes about 1,200 miles of natural gas, natural gas liquids, and crude oil gathering pipelines across the Midland and Delaware basins, roughly 1.0 Bcf per day of Permian-based processing capacity, and expansion projects aimed at reaching about 1.3 Bcf per day by the end of 2026. It also reported 75,000 barrels of crude oil storage.
KEY QUOTE:
“In a matter of just three years, Brazos has secured long-term dedications for gas gathering & processing services covering over 375,000 acres with leading energy producers in the Midland Basin. With this newly expanded bank facility, along with the continued support of our equity partners, Brazos has fully secured the capital sources needed to complete the aggressive buildout of our Midland business as we continue to generate material growth in operating cash flow.”
William Butler, Chief Financial Officer, Brazos Midstream
