ArcLight-Backed Amarillo and Rattler to Form Midland Basin JV

Updated 1 year 6 months ago

ArcLight Capital-backed Amarillo Midstream Diamondback subsidiary Rattler Midstream have agreed to form a 50-50 joint venture to own, operate, and expand a natural gas gathering and processing system in the Midland Basin. The new entity will be called Amarillo Rattler and include the Yellow Rose gathering system with 40,000 Mcf/d of processing capacity and 84 miles of pipeline. The JV intends to build a new 60,000 Mcf/d cryogenic processing plant in Martin County, Texas as well as incremental gathering and transportation pipelines. The plant is expected to enter service in mid 2021 with Diamondback contracted for a portion of capacity.

Diamondback CEO

We are excited to partner with ArcLight and Amarillo Midstream in expanding this gas gathering and processing system in one of our core growth areas for years to come. Enhanced planning and coordination between our gas gathering and processing partners in this venture, and across all of our operations, increases the capital efficiency and reliability of the integrated systems and minimizes increasingly undesirable outcomes such as flaring.