OREANDA-NEWS. April 18, 2017. Private equity group Blackstone has agreed to buy EagleClaw Midstream Ventures for $2bn, expanding its footprint in the burgeoning Permian basin.

The deal includes more than 375 miles (604km) of natural gas gathering lines and 320mn cf/d (9mn m?/d) of processing capacity, with another 400mn cf/d under construction.

EagleClaw is the largest privately held midstream operator in the Delaware portion of the Permian. The company's assets are in Reeves, Ward and Culberson counties.

EagleClaw will retain its name and operate as a Blackstone portfolio company, the companies said.

The deal, expected to close by July, is an all-cash transaction and includes about $1.25bn in stapled debt financing provided by Jefferies.

Oil and gas output in the top-producing Permian has been more resilient than in other regions during the downturn in commodity prices because of lower extraction costs. Several companies have decided to concentrate on the Permian while selling off assets in other fields.

Midstream companies are investing heavily to add takeaway capacity out of the region because of the expected rise in output.