Medallion Midstream Services Announces Southern Delaware Basin Crude Oil Pipeline

Medallion Midstream LLC, December 7, 2016

Medallion Midstream, LLC and its affiliate, Medallion Midstream Services, LLC, (Medallion) have announced that it has entered into a letter of intent to construct a new Delaware Basin crude oil pipeline system to provide crude oil gathering and transportation services for Parsley Energy (Parsley).  The new pipeline will be anchored by Parsley’s long-term dedication to Medallion of approximately 35,000 acres held under lease and/or mineral interest in Pecos and Reeves Counties, Texas.

Medallion’s Delaware Basin pipeline system will initially consist of approximately 45 miles of 16-inch mainline and approximately 25 miles of smaller diameter gathering pipelines along with a crude oil station in Pecos County consisting of crude oil storage and truck unloading facilities.  The pipeline, which is expected to have an initial capacity of 100,000 barrels per day, will originate within the Parsley leases and will end in Crane County, Texas at an interconnection into Medallion Pipeline Company’s existing 600-mile Midland Basin header system, accessing multiple Permian Basin long-haul take away pipelines. The parties expect to finalize and sign a definitive agreement in the first quarter of 2017 and the new crude oil pipeline is expected to start initial service in June 2017.

We are honored that Parsley has chosen Medallion to provide crude oil gathering and transportation services for its core Delaware Basin acreage,” said Medallion Chief Executive Officer Randy Lentz. “Parsley is one of the most recognized and dynamic companies in the energy space today and we are excited to continue our partnership with them.

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