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Lucid Energy Commissions New Gas Processing Plant in the Delaware Basin

Lucid Energy Group, May 29, 2017

Midstream provider Lucid Energy Group (“Lucid”) has announced the startup of the Red Hills II cryogenic natural gas processing plant in Lea County, New Mexico. With the expansion, the Red Hills Natural Gas Processing Complex has the capacity to process 310 million cubic feet per day (MMcf/d), which brings the total processing capacity of Lucid’s South Carlsbad Gas Gathering and Processing System (“South Carlsbad System”) in Lea and Eddy counties to 345 MMcf/d, tripling processing capacity since Lucid's September 1, 2016, acquisition of Agave Energy Company. The South Carlsbad System serves producers developing the prolific Wolfcamp, Bone Springs and Avalon formations of the northern Delaware Basin.  

Lucid also announced that it remains on schedule with its previously announced Roadrunner cryogenic processing plant. Roadrunner I, the first plant at the Roadrunner Complex in Eddy County, is a 200 MMcf/d plant, which will bring the total capacity of the South Carlsbad System to 545 MMcf/d in January 2018. The location of the Roadrunner Complex is strategic to the company’s existing infrastructure and customer base in the northern Delaware Basin.

 “We are excited to announce we have successfully brought the Red Hills II cryogenic processing plant online ahead of schedule,” said Lucid Executive Vice President and Chief Operating Officer Jay Langham. “As a result of the rapid execution of the Lucid team, we have provided immediate capacity and reliability for our Delaware Basin customers in Eddy and Lea counties.  Consistent with our commitment to continuing to provide superior service to our customers, our team now shifts focus to processing expansions in Eddy County.

About Lucid Energy Group

Lucid Energy Group provides a full suite of midstream services to producers working in the Midland and Delaware basins (maps here). Lucid is the largest privately held natural gas processor in the Permian Basin with more than 930 million cubic feet of natural gas processing capacity in operation or under construction and pipeline assets exceeding 3,600 miles in operation. The Lucid philosophy is grounded in finding creative solutions for its customers, clear communications and excellence in project execution. Visit www.lucid-energy.com for more information.

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. The firm manages investment commitments of nearly $6 billion from a broad group of institutional investors. EnCap Flatrock is currently making commitments to new management teams from EFM Fund III, a $3 billion fund. The firm is headquartered in San Antonio and has offices in Oklahoma City and Houston. Visit www.efmidstream.com for more information.


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