Lucid Energy, along with its banking and financial backing in EnCap Flatrock Midstream, have announced that they have entered into a selling agreement with Riverstone Global Energy and Power Fund VI, LLC (better known as Lucid II), and with the merchant banking division of Goldman Sachs for a sale total of $1.6 billion. It is being said that the investment funds that are part of the Goldman Sachs end of the deal are West Street Capital Partners VII L.P., West Street Global Infrastructure Partners III L.P., and West Street Energy Partners L.P. The main portion of the company operations is in the Northern Delaware Basin in an area known as the South Carlsbad Natural Gas Gathering and Processing System and the Artesia Natural Gas Gathering and Processing System.
The sale of Lucid II also involves debt financing that is said to be covered by Jefferies LLC. The deal is said to see to a closing date sometime during the first quarter of 2018. The deal is still subject to the regular approvals and conditions that come with closing deals of such nature. The deal will still let Lucid II to retain its name but will now become a part of the portfolio and holdings of Riverstone Global Energy and Goldman Sachs (note: Riverstone was founded by David Leuschen and Pierre Lapeyre in 2000).
Lucid II consists of 1,700 miles of natural gas pipeline and is able to produce 585 million cubic feet a day of natural gas. The company has another 200 million cubic feet a day that it will be able to produce once current expansion work is finished. The company has also said that they are committed to developing production on 450,000 acres of land that it has acquired in New Mexico.
Lucid II was started in 2015 and within 15 months of operation have seen their processing capacity increasing by an amazing 750 percent.