EnCap Flatrock Midstream has successfully agreed to sell Ironwood Midstream Energy Partners II and its stakes in Plains Series A Preferred Units to Plains All American for over $800 million, with the transaction expected to close in early 2025.

Target Company Overview

EnCap Flatrock Midstream (EFM) has executed two definitive agreements to sell Ironwood Midstream Energy Partners II, LLC (referred to as Ironwood II) and its interest in Plains Series A Preferred Units to Plains All American, L.P. The total cash proceeds from these transactions are estimated at over $800 million. The expected completion of these transactions is slated for the first quarter of 2025, pending customary closing conditions such as regulatory approvals.

Ironwood II, headquartered in San Antonio, Texas, is recognized as a premier crude oil gathering and transportation company serving a diverse range of upstream customers in the Eagle Ford shale region of South Texas. Since partnering with EFM in 2019, Ironwood II has successfully executed a consolidation strategy aimed at enhancing its operations within the region, establishing itself as a top-tier midstream provider.

Industry Overview in the United States

The midstream sector, particularly in the United States, plays a critical role in the energy supply chain, facilitating the transportation, storage, and processing of oil and gas resources. The current landscape is characterize