Cardinal Midstream Announces Acquisition Of Natural Gas Business In Prolific Delaware Basin

Nov 02, 2022•almost 3 years ago

Acquiring Company

Cardinal Midstream

Acquired Company

Gas Business

Oil And GasEnergy

Description

Cardinal Midstream Partners (“Cardinal”), an independent midstream energy company based in Dallas, announced today it has signed definitive agreements with Medallion Midstream Services (“Medallion”) to acquire Medallion’s natural gas gathering and processing business in the Delaware Basin in West Texas. The transaction is subject to customary closing conditions and is expected to close in early 2023.

Company Information

Company

Cardinal Midstream

About

Based in Dallas, Cardinal Midstream Partners was founded in 2022 and is focused on the pursuit of midstream acquisition and development opportunities across North America, specifically natural gas gathering and processing and congruent carbon capture and sequestration. The company is led by four founders: Chief Executive Officer Doug Dormer; Chief Financial Officer Douglas Gale; Chief Commercial Officer Justin Garrity; and Chief Operating Officer Clayton Hewett. With more than 80 years of combined experience in the energy industry, the founders each have built notable careers creating, managing, constructing, and operating successful midstream businesses through full life cycle. For more information, visit cardinalmp.com.

M&A Insights

Based on deal data

Integration timeline

70% of M&A integrations take 12-24 months to complete

Tech stack consolidation

83% of merged companies consolidate technology vendors within first year

Post-acquisition investment

Companies increase IT spending by 23% on average after acquisitions

Success factor

M&A deals with strong technology integration plans are 2.5x more likely to succeed