Clearfork Midstream Announces Signing of New Commercial Agreements and Expansion of its Haynesville Gathering, Treating, and Compression Capacity in North Louisiana
- Clearfork has executed several new commercial agreements, including two separate producer agreements with minimum volume commitments to support significant expansion projects, including:
- a 700 million cubic feet per day (“MMcf/d”) expansion of treating capacity on Clearfork’s Holly System, which will bring the total Holly treating capacity to approximately 1.3 billion cubic feet per day (“Bcf/d”) during the first quarter of 2023; and
- new large-diameter gathering pipelines stretching east across the Red River and west into the Spring Ridge area to serve new and existing customers’ production growth.
- Clearfork is also permitting an additional increase of treating capacity across its Holly System that could utilize Clearfork’s existing assets to bring total Holly treating capacity from 1.3 Bcf/d to approximately 1.8 Bcf/d in 2023, subject to commercial demand.
FORT WORTH, Texas –October 11, 2022 – Clearfork Midstream LLC (“Clearfork”) today announced the signing of several new producer-customer commercial agreements and treating capacity expansions on its Holly System in North Louisiana. The announcement highlights Clearfork’s continued commercial success and growth following its acquisition in February 2022 of a natural gas gathering and treating platform serving core areas of the Haynesville Shale in North Louisiana and East Texas. Clearfork is actively developing new midstream gathering and treating projects in addition to increasing downstream takeaway optionality for Haynesville producers.
In connection with a long-term acreage dedication finalized in August 2022, Clearfork is expanding the footprint of its Holly System by constructing a 24-inch diameter pipeline to the east side of the Red River in northeast Red River Parish, Louisiana. On the west side of the Holly System, Clearfork is constructing a 16-inch diameter pipeline that will expand Clearfork’s capacity in the Spring Ridge area in Caddo Parish, Louisiana, to service expected customer production growth in 2023. As part of these expansions, Clearfork plans to build new interconnects for additional takeaway capacity and downstream market optionality for customers.
In conjunction with the gathering expansion, Clearfork is increasing its overall treating and compression capacity across its Holly System. Treating capacity at Clearfork’s Holly 3 facility will increase with the installation of new contactor towers, optimization projects, and additional compression across the system, which will provide lower-pressure service while also meeting the pressure requirements of downstream pipelines. Treating capacity at Clearfork’s Holly 6 facility will increase with the installation of a recently acquired amine plant and related assets. Looking beyond these expansion projects, Clearfork also owns idle amine treating assets that could, when paired with additional commercial activity, further increase treating capacity to bring the total treating capacity across Clearfork’s Holly System to approximately 1.8 Bcf/d in 2023.
“We’re pleased to announce these new commercial agreements and expansion projects on our Holly System, which provides our Haynesville producer customers with access to premium downstream markets,” said Clearfork CEO Kipper Overstreet. “These expansions strengthen our position in the Haynesville, where we remain focused on deploying growth capital and developing the infrastructure needed to serve our customers’ needs. Our commercial and operational teams have been instrumental in building relationships with our customers in accordance with our core values. We know our customers put their trust in us to be a dependable partner and a reliable operator, so we’ve also invested heavily in making operational improvements to support our uptime targets. We’re committed to making additional improvements as we strive to exceed customer expectations and industry standards.”
About Clearfork Midstream
Formed in 2020 and based in Fort Worth, Clearfork is a growth-oriented midstream company that provides midstream solutions for natural gas producers in the Haynesville Shale formation. The company’s vision is to build long-term, mutually beneficial relationships with producers by offering reliable midstream services and a collaborative approach that maximizes the value of production. Clearfork’s services currently include natural gas gathering, treating, dehydration, compression, and transportation in North Louisiana and East Texas. Clearfork is backed by a $400 million equity commitment from EnCap Flatrock Midstream. For more information, please visit clearforkmidstream.com.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion from a broad group of prestigious institutional investors. EnCap Flatrock Midstream is currently making commitments to management teams from EFM Fund IV, a $3.25 billion fund. For more information, please visit efmidstream.com.