Salt Creek Midstream Secures Major Capital Injection to Accelerate Delaware Basin Operations

Strategic Recapitalization Strengthens Gas Infrastructure Player’s Market Position

Salt Creek Midstream has successfully completed a comprehensive capital restructuring, bringing fresh investment from both its existing lending partners and funds managed by Ares Management, a major player in alternative investments. The deal, which received unanimous approval from all lender groups, marks a significant milestone for the company’s expansion ambitions in the prolific Delaware Basin.

The Delaware Basin has emerged as one of North America’s most active energy production regions, and Salt Creek Midstream’s enhanced financial position positions it to capitalize on this opportunity. The company operates an extensive 400-plus-mile pipeline network with high-pressure capacity, capable of transporting over 1.4 billion cubic feet per day (Bcf/d). Its processing infrastructure includes 400 million cubic feet daily (MMcf/d) of cryogenic capacity, supported by long-term supply agreements with 16 major producers covering 405,000 dedicated acres.

Enhanced Financial Runway

The restructured capital framework provides Salt Creek Midstream with greater financial flexibility and improved cash flow capacity, enabling the company to pursue growth initiatives and fund development projects. John Poarch, President of Salt Creek Midstream, emphasized that the recapitalization reflects investor confidence in the business despite current industry headwinds. “This step secures our long-term trajectory and allows us to execute on our strategic vision in one of North America’s most dynamic energy plays,” Poarch noted.

Zach Lee, CEO of ARM Midstream Management, highlighted the company’s evolution over the past three years, stating that Salt Creek Midstream has become one of the largest midstream assets in the Delaware Basin. Ares Management’s involvement underscores the sector’s attractiveness, with executives noting that the recapitalization positions the company to execute its business plan while generating sustained value.

Industry Significance

Since its 2017 launch, Salt Creek Midstream has established itself as a leading independent gas gatherer and processor in the Delaware Basin. Its integrated service model—combining extensive pipeline infrastructure with large-scale processing facilities and downstream solutions—enables it to deliver comprehensive value to regional producers navigating an increasingly complex energy landscape.

The recapitalization validates market confidence in Salt Creek Midstream’s operational model and growth prospects as the energy sector navigates transition and recovery.