Funding
Salt Creek Midstream Refinances With $980 Million First Lien Term Loan Due 2031
By News Desk ·
Key takeaways
- Salt Creek Midstream completed a $980 million first lien term loan due 2031 and a $35 million super-priority revolving credit facility due 2031.
- The company used the term loan proceeds to repay its existing first and second lien term loans due 2027.
- Salt Creek expects full processing utilization of 600 MMcf/d or more in the first half of 2027 and plans a final investment decision on up to 300 MMcf/d of added capacity by the end of 2026.
Salt Creek Midstream completed a $980 million first lien term loan due 2031 and a $35 million super-priority revolving credit facility due 2031, the company said in a Business Wire announcement on November 11, 2026. Jefferies LLC served as Lead Left Arranger. The company used the term loan's net proceeds to repay its existing first and second lien term loans due 2027.
How Salt Creek Structured The Refinancing
The new revolving credit facility will remain undrawn at close and includes a $40 million accordion feature. Salt Creek holds B2 and B credit ratings from Moody's and S&P, respectively. "This successful refinancing highlights the exceptional performance of the business and provides additional financial strength to continue pursuing the Company's expansion plans alongside providing best-in-class service to its customers," said John Bookout, Salt Creek's Chief Executive Officer.
The commercial update covers long-term acreage dedications of approximately 300,000 dedicated acres from over 20 Permian customers across all eight core counties in the Delaware Basin. About 75% of expected 2027 throughput is expected to come from investment grade counterparties, and roughly 35% of expected 2027 throughput is supported by volume commitments from customers.
Dedications include approximately 40,000 acres in the liquids-rich core Woodford fairway, and Salt Creek's Woodford volumes are expected to eclipse 200 MMcf/d by the end of 2027. The company reports more than 600 future well locations within the Woodford. Salt Creek also installed a 13-mile, 20-inch pipeline loop along its existing eastern trunkline system, increasing gathering capacity out of Lea, Winkler and Loving counties by up to 40%.
Salt Creek's Pipeline And Processing Footprint
According to akta.pro company records, Salt Creek operates approximately 884 miles of combined natural gas and crude oil gathering pipelines and a 600 MMcf/d cryogenic natural gas processing complex, the Pecos Gas Processing Complex, in Reeves County, Texas. The same records list liquids storage capacity of about 350,000 barrels in the Delaware Basin and downstream residue gas connectivity to Kinder Morgan El Paso and ONEOK Roadrunner.
The records also describe a 2017 joint venture with Chevron Corporation for crude oil gathering services in the Delaware Basin and the 445 mb/d Alpine NGL Header pipeline connecting the Pecos complex to downstream NGL markets.
Pecos IV Decision And 2027 Timelines
Salt Creek plans to reach a final investment decision for up to an additional 300 MMcf/d by the end of 2026. The additional train, Pecos IV, would be installed in Reeves County and commissioned in the second half of 2028, increasing installed processing capacity to up to 900 MMcf/d depending on ultimate sizing. Strategic offload contracts securing firm processing capacity are expected to be in service by the end of the first quarter of 2027.