Milbank LLP advised First Infrastructure Capital Advisors, LLC on its acquisition of WhiteWater Midstream. As part of the transaction, First Infrastructure Capital will acquire WhiteWater, including its 60% stake in Agua Blanca, a Delaware Basin intrastate natural gas pipeline system, as detailed in the press release issued by First Infrastructure Capital. Contemporaneously with this transaction, First Infrastructure Capital also entered into definitive agreements to acquire WPX Energy, Inc.’s 20% ownership stake in Agua Blanca. Closing is expected in the first quarter of 2019 and is subject to customary approvals and closing conditions.
Agua Blanca is a natural gas residue pipeline servicing the Delaware Basin. The system consists of ~90 miles of 36” diameter pipeline and 70 miles of smaller diameter pipeline crossing portions of Culberson, Loving, Pecos, Reeves, Ward and Winkler counties. The initial capacity is ~1.4 Bcf/d with significant expansion plans underway. The asset is supported by multiple, substantial, long-term, take or pay contracts. The Agua Blanca system has a multitude of direct downstream connections which provide shippers on the system access to multiple markets.
“We are pleased to have represented First Infrastructure Capital on this significant investment and look forward to the combined success of First Infrastructure Capital and the WhiteWater Midstream management team,” noted Milbank Corporate partner John Franchini.
The Milbank deal team was led by Corporate partner John Franchini with associates Francisco Nuñez, Aaron Stine, Monica Arduini, Amanda Goodhart and Catherine Chong. Advice was also provided by Project, Energy and Infrastructure Finance partner Jonathan Green with associate Jeeseon Ahn and Aqsa Mahmud; Tax partner Max Goodman with associate Jules Mugema; Executive Compensation partner Joel Krasnow with associate James Beebe; and Antitrust partner Fiona Schaeffer.
