[Context: On October 30, Salt Creek Midstream, backed by Ares and ARM Energy, announced a a $650m term loan through Deutsche Bank. Further details and related links are below.]
Salt Creek Midstream Secures $650 Million Term Loan Through Deutsche Bank
HOUSTON–October 30, 2018 –(BUSINESS WIRE)–Salt Creek Midstream, LLC (“Salt Creek”), a portfolio company owned by funds managed by the Private Equity Group of Ares Management, L.P. (“Ares”) and ARM Energy Holdings, LLC (“ARM Energy”) today announced the successful close of a four-year, $650 million term loan through Deutsche Bank. The proceeds will fund the continuing development and expansion of Salt Creek’s business in the Delaware Basin, specifically, the completion of a second 200 Mmcf/d cryo processing plant and gas pipelines; crude gathering and terminalling infrastructure growth; and expansion of Salt Creek’s water gathering and disposal business.
“We are extremely pleased that Deutsche Bank has again chosen to underwrite our Salt Creek franchise and appreciate its confidence in the team and our expansion opportunities,” said ARM Energy’s CEO Zach Lee. “The financing will support our continuing work to build world-class midstream assets, which we expect will provide decades of high-return drilling inventory, driving additional project growth and scale in a rapidly expanding basin as well as downstream market solutions for residue gas, NGLs and crude.”
About Salt Creek Midstream, LLC
Formed in 2017, Houston-headquartered Salt Creek Midstream, LLC is a joint venture of ARM Energy Holdings, LLC and funds managed by the Private Equity Group of Ares. Salt Creek is a full service midstream provider in the Delaware Basin, offering gas and crude gathering, compression, cryogenic processing and treating services, as well as water gathering and disposal services. Salt Creek currently spans over 350,000 acres in gas dedications and approximately 300,000 acres in crude across Culberson, Reeves, Ward, Winkler, Lea, Pecos, and Eddy Counties within the Delaware Basin.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $121.4 billion of assets under management as of June 30, 2018 and 18 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.
About ARM Energy Holdings, LLC
Headquartered in Houston, with offices in Calgary, Denver, Midland, and Pittsburgh, ARM Energy Holdings, LLC is a premier producer services firm, active in every sector of the energy value chain across all major North American oil and gas basins. Its integrated, diversified portfolio includes Asset Risk Management, LLC, providing risk management and hedging strategies for producers; ARM Energy Management LLC, providing physical oil and gas marketing, transportation and asset management services and trading; and ARM Midstream, LLC, providing midstream investment, infrastructure development and operations.