Energy Giants Are Stalking This Prey in Hopes of Bagging a Speedy New Growth Platform

According to a report by Bloomberg, private equity-backed Oryx Midstream Services is weighing its options, including a potential sale or initial public offering. That report noted that several energy giants had expressed interest in buying Oryx, including master limited partnerships Enterprise Products Partners (NYSE: EPD) and Magellan Midstream Partners (NYSE: MMP) and refining giant Valero Energy (NYSE: VLO). Fueling that interest is Oryx's growing footprint in the Permian Basin, where production is expanding at a rapid rate as producers tap into its treasure trove of oil.

Oryx Midstream Services formed in early 2014 when a group of investors committed $300 million in equity to pursue midstream opportunities in the Permian Basin. It has since developed the Oryx Trans Permian pipeline system (OTP), which currently has the capacity to transport 160,000 barrels of oil per day via 260 miles of gathering lines and 114 miles of transmission pipeline. Furthermore, it has three storage and pumping terminals with 390,000 barrels of capacity.

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Source: Fool.com