Howard Energy Announces Completion of Growth Projects in Delaware Basin

Tue May 21, 2019 - West Edition #11
Associated Press

Howard Energy Partners (HEP) announced May 16 that it has completed construction on the majority of its previously-announced crude oil and natural gas gathering and processing infrastructure in the core of the Delaware Basin. HEP's Delaware Basin assets are part of a strategic joint venture with WPX Energy that is operated by HEP and supported by an area of mutual interest of more than 600 sq. mi. in Lea and Eddy Counties, New Mexico and Reeves and Loving Counties, Texas. These assets are the initial phase of HEP's broader strategic plan in the area.

HEP recently commissioned the second 200 million cu. ft. per day (MMcf/d) plant as part of its two-plant, 400 MMcf/d cryogenic processing complex in Reeves County. The first plant came online in September 2018. Referred to as the County Line Facility, the facility also includes 4,000 barrels per day (BPD) of condensate stabilization capacity and provides connections to WhiteWater Midstream and El Paso Natural Gas transmission pipelines; and EPIC and ONEOK West Texas NGL pipelines.

HEP completed more than 50 mi. of crude oil gathering pipelines with 100,000 BPD of capacity, and an associated 50,000-barrel crude oil terminal in Reeves County. HEP has entered into a new contractual commitment to support a significant Delaware Basin producer that will further expand HEP's crude oil gathering to accommodate the dedication of more than 10,000 additional gross acres.

HEP continues to build out its natural gas infrastructure, recently completing a 23-mi., 24-in. trunkline connecting additional gas processing supplies in the area. Construction is ongoing of approximately 21 mi. of 16-in. high pressure, rich gas gathering pipelines, expected to be complete this summer. Once fully built out, the system will have approximately 800 MMcf/d of throughput capacity. HEP has the capability to expand infrastructure as customers continue to move towards full-scale development.

"The completion of our previously announced projects in the Delaware Basin and our continued presence in the region is part of our broader company strategy to diversify both service offerings and geographic area," said Mike Howard, HEP chairman and chief executive officer. "We are in the core of the core of the Delaware Basin with multiple productive zones and it will continue to be a growth focus for HEP. Through our strategic relationships and great customer service we continue to attract third party business and expect volume growth to remain strong on our strategically-located processing and pipeline assets."

HEP has operations in six oil and gas development regions including the Texas Gulf Coast; the STACK in Oklahoma; the Eagle Ford in South Texas; the Delaware in West Texas and southern New Mexico; the Marcellus in Pennsylvania; and Mexico via the Nueva Era Pipeline.

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