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Blog Exposure - Sanchez Midstream Partners’ Expanded Joint Venture with Targa Resources in South Texas

LONDON, UK / ACCESSWIRE / May 25, 2018 / If you want access to our free research report on Sanchez Midstream Partners L.P. (NYSE: SNMP), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SNMP as the Company's latest news hit the wire. On May 23, 2018, the Company announced that it has signed a deal with Targa Resources Corp. (NYSE: TRGP) (''Targa''), pursuant to which both parties have merged their respective 50% interests in the entities that own the high pressure Carnero Gathering Line and Raptor Gas Processing Facility to form an expanded 50/50 joint venture (JV) in South Texas. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sanchez Midstream Partners and Targa Resources most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:



Details of JV

  • In addition to owning the Raptor Gas Processing Facility, the Carnero JV has acquired Targa's 200 million cubic feet per day Silver Oak II Gas Processing Plant, located in Bee County Texas, which expands the processing capacity of JV from 260 MMcf/d to 460 MMcf/d, and owns the full capacity of the Carnero Gathering Line.
  • Additional enhancements to the parties' prior this JV includes new dedication of over 315,000 gross Comanche acres in the Western Eagle Ford, operated by Sanchez Energy Corporation (SN), under a new long-term firm gas gathering and processing agreement.
  • The deal with Sanchez Energy, which has been approved by all of the unaffiliated Comanche working interest partners, establishes commercial terms for the gathering of gas on the Carnero Gathering Line and processing at the Raptor Gas Processing Facility and Silver Oak II.
  • Prior to execution of the agreement, Comanche volumes were gathered and processed on an interruptible basis, with the processing capabilities of JV limited by the capacity of the Raptor Gas Processing Facility.

Carnero JV Enhances SNMP's Midstream Strategy; Secures and Expands its Third-Party Volumes

Gerry Willinger, CEO of the General Partner of SNMP, stated that the Carnero JV enhances the Company's midstream strategy, secures and expands its third-party volumes, and is expected to provide additional stable, fee-based cash flow to the Partnership over time.

According to him, the structure of the transaction greatly simplifies SNMP's previous joint ventures with Targa, which facilitates greater operating efficiencies and provides a solid platform for the continuing growth of the Carnero JV in South Texas.

Gerry added that the transaction is expected to be immediately accretive to the Partnership, with benefits that increase as the joint venture services the needs of Sanchez Energy and other producers and marketers in South Texas.

Gerry further stated that by adding Silver Oak II and the additional capacity of the Carnero Gathering Line to the Carnero JV, the Company's South Texas midstream assets, which include Western Catarina Midstream and the Seco Pipeline, are strategically positioned to capture the increase in volumes from the significant development activity underway in the Western Eagle Ford without spending any incremental development dollars.

About Sanchez Midstream Partners L.P.

Sanchez Midstream Partners is a growth-oriented publicly-traded limited partnership focused on the acquisition, development, ownership, and operation of midstream and other energy related assets in North America. The Partnership has ownership stakes in oil and natural gas gathering systems, natural gas pipelines, and a natural gas processing facility, all located in the Western Eagle Ford in South Texas.

Stock Performance Snapshot

May 24, 2018 - At Thursday's closing bell, Sanchez Midstream Partners' stock marginally declined 0.42%, ending the trading session at $11.95.

Volume traded for the day: 27.31 thousand shares.

Stock performance in the last three-month - up 10.65%; previous six-month period - up 4.82%; and year-to-date - up 7.66%

After yesterday's close, Sanchez Midstream Partners' market cap was at $174.71 million.

The stock has a dividend yield of 15.06%.

The stock is part of the Basic Materials sector, categorized under the Oil & Gas Pipelines industry.


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