Vaquero Midstream Announces Closing of Multi-Million Dollar Revolving Credit Facility
THE WOODLANDS, Texas – Vaquero Midstream has announced today that it recently closed a $40 million revolving credit facility, expandable to $150 million, led by LegacyTexas Bank and ABN-AMRO. The revolver, which has a 4-year term, is available for use in general corporate purposes, including overhead and construction of new facilities around Vaquero’s assets in the Southern Delaware Basin. A portion of the facility will pay the initial costs associated with Vaquero’s second cryogenic unit, which is set for delivery in the next few weeks. As Vaquero continues to grow its business, it expects to grow the size of the facility and add additional banks.
In addition, Vaquero has received an unfunded equity commitment of $40 million from its equity sponsors for future working capital and expansion opportunities.
“Vaquero has completed Phase I of its development of a large-scale gathering and processing solution in Pecos and Reeves counties,” said William Davis, Vaquero Principal. “This financial support will allow us to continue to grow the assets. We are currently building laterals off the main gathering spine to attach recently completed and contracted production. We are also looking for opportunities to expand the gathering footprint into Culberson, Ward, and Loving counties, and to install additional processing capacity at the Caymus site, where we have room for a total of five 200 MMSCFD cryogenic units. The total of 1 BCFD of processing capacity we can ultimately install matches up well with the estimated 1 BCFD of gathering capacity we have installed.“