Canes Midstream Expands Oil and Natural Gas Portfolio with Acquisition of Cogent Midstream in Southern Midland Basin

With natural gas hitting highs not seen since 2008 and WTI crude oil around $115bbl the Dallas-based portfolio company of EIV Capital and Denham Capital, Canes Midstream LLC closed on the acquisition of Cogent Midstream LLC. The Cogent assets are located in the southern portion of the Permian’s Midland sub-basin. The Cogent system spans 10 Texas counties, with most of the infrastructure located in Reagan and Irion counties. 

Cogent Midstream’s Big Lake Natural Gas Processing Complex is located in the Midland Basin. This photo shows Big Lake I and II. (Source: Cogent Midstream)

The acquired assets include 520 million cubic feet per day of processing capacity, over 800 miles of pipelines, 42 compressor stations, a crude oil gathering system, and substantial acreage dedications from a diverse group of Midland Basin-focused producers.

“I was with these assets at inception and am excited to return and continue to grow them. With our newer facilities and the significant capital invested by Cogent to date, we are well positioned to grow the system and provide best-in-class midstream services to our existing and future customers. I believe Canes will be the preferred midstream service provider in the Southern Midland Basin.”

Scott Brown, Founder and CEO of Canes

“We are thrilled to expand our partnership with Canes and are confident Scott’s familiarity with the team and assets position the Cogent system to be the midstream provider of choice in the area. With fresh capital, Canes will continue to expand the system and support Permian production growth,” said Greg Davis, Partner at EIV.

James Obulaney, Managing Director of Denham, said, “Canes, via this acquisition, is well positioned to drive differentiated outcomes for area producers. We look forward to supporting Scott and team as they grow this tier-1 system to service new and existing customers in the Permian Basin.”

Wells Fargo Securities, LLC acted as exclusive financial advisor and Sidley Austin LLP acted as corporate counsel to Canes. BofA Securities served as exclusive financial advisor to Cogent.

Current Canes Midstream services include low-pressure gas gathering, dehydration, compression, CO₂ treating, nitrogen rejection and cryogenic processing; crude oil gathering by pipeline and third-party condensate stabilization. Natural gas processing nameplate capacity of 520 MMcf/d. Crude oil gathering system capacity is 80,000 bbl/d. (Source: Canes Midstream)

About Canes Midstream LLC

Headquartered in Dallas, TX and founded in 2019, Canes Midstream LLC is a midstream oil and gas company that offers a full suite of midstream services to our customers. Canes’ management has been focused on gas gathering and processing as well as crude oil gathering their entire careers. For more information, visit www.canesmidstream.com.

About EIV Capital

Founded in 2009, EIV Capital is a Houston, Texas-based private equity firm specializing in providing growth equity to the North American energy industry. EIV Capital focuses on investments in businesses which create value through infrastructure, innovation or efficiency. The firm’s management has extensive experience leading and investing in successful companies across the energy value chain. For more information, visit www.eivcapital.com

About Denham Capital

Denham Capital is a leading energy, resources and sustainable infrastructure-focused investment firm with more than $12 billion of invested and committed capital across multiple fund vehicles since inception, and offices in London, Boston, Houston, Toronto, Jersey City, and Perth. The firm makes direct equity and debt investments in the energy, resources and infrastructure sectors, including businesses involving renewable power, energy resource development, and mining, across the globe. Denham’s investment professionals apply deep operational and industry experience and work in partnership with entrepreneurs and management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.

Source: Business Wire

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