Morgan Stanley Energy Partners completes sale of Durango Permian to Kinetik

Investment funds managed by Morgan Stanley Energy Partners (MS) announced the closing of the sale of Durango Permian to a subsidiary of Kinetik Holdings (KNTK). Consideration for the Durango Permian sale includes a combination of cash and equity, including contingent consideration payable upon the successful commissioning of Durango Permian’s Kings Landing Gas Gathering and Processing Development. Durango Permian, a subsidiary of Durango Midstream, is a gas gathering, processing, and carbon dioxide sequestration business operating in the Permian Basin of southeast New Mexico. Durango is majority-owned by funds managed by Morgan Stanley Energy Partners. Commenting on the transaction, Richard Cargile, President and Chief Executive Officer of Durango, said: “Durango is excited to announce the completion of the sale of its Permian Basin assets to Kinetik. I am very proud of the dedication and tireless efforts of our employees as we have expanded our presence in New Mexico through two acquisitions and multiple growth projects in partnership with Morgan Stanley Energy Partners over the last five years. We share in Kinetik’s enthusiasm for the sustained growth potential of Durango’s operating region and for the Kings Landing project, which will provide a critical gas processing and treatment solution for the region’s producers. The Company’s assets are complementary to Kinetik’s existing operating footprint, expand Kinetik’s presence in New Mexico, and reinforce Kinetik’s value proposition as a pure-play midstream provider across the entire Delaware Basin. The combination of assets is expected to realize significant operating synergies and capture economies of scale benefits. The base business provides strong stable earnings and the commissioning of Kings Landing supports significant future growth in the area.”