Market Overview

Howard Energy Partners Announces Completion of Growth Projects in Delaware Basin

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  • Completes second plant, yielding 400 million cubic feet per day of
    cryogenic processing capacity
  • Completes over 50 miles of new crude oil gathering pipelines and
    50,000-barrel terminal facility
  • Enters into a new 10,000-acre dedication for additional crude oil
    gathering
  • Additional construction of associated high pressure, rich gas
    gathering pipelines supports ongoing growth in the region

Howard
Energy Partners
(HEP) today announced that it has completed
construction on the majority of its previously-announced crude oil and
natural gas gathering and processing infrastructure in the core of the
Delaware Basin. HEP's Delaware Basin assets are part of a strategic
joint venture with WPX
Energy
(NYSE:WPX) that is operated by HEP and supported by an area
of mutual interest of more than 600 square miles in Lea and Eddy
Counties, New Mexico and Reeves and Loving Counties, Texas. These assets
are the initial phase of HEP's broader strategic plan in the area.

  • HEP recently commissioned the second 200 million cubic feet per day
    (MMcf/d) plant as part of its two-plant, 400 MMcf/d cryogenic
    processing complex in Reeves County. The first plant came online in
    September 2018. Referred to as the County Line Facility, the facility
    also includes 4,000 barrels per day (BPD) of condensate stabilization
    capacity and provides connections to WhiteWater Midstream and El Paso
    Natural Gas transmission pipelines; and EPIC and ONEOK West Texas NGL
    pipelines.
  • HEP completed more than 50 miles of crude oil gathering pipelines with
    100,000 BPD of capacity, and an associated 50,000-barrel crude oil
    terminal in Reeves County.
  • HEP has entered into a new contractual commitment to support a
    significant Delaware Basin producer that will further expand HEP's
    crude oil gathering to accommodate the dedication of more than 10,000
    additional gross acres.
  • HEP continues to build out its natural gas infrastructure, recently
    completing a 23-mile, 24-inch trunkline connecting additional gas
    processing supplies in the area. Construction is ongoing of
    approximately 21 miles of 16-inch high pressure, rich gas gathering
    pipelines, expected to be complete this summer. Once fully built out,
    the system will have approximately 800 MMcf/d of throughput capacity.
    HEP has the capability to expand infrastructure as customers continue
    to move towards full-scale development.

"The completion of our previously announced projects in the Delaware
Basin and our continued presence in the region is part of our broader
company strategy to diversify both service offerings and geographic
area," said HEP Chairman and Chief Executive Officer Mike Howard. "We
are in the core of the core of the Delaware Basin with multiple
productive zones and it will continue to be a growth focus for HEP.
Through our strategic relationships and great customer service we
continue to attract third party business and expect volume growth to
remain strong on our strategically-located processing and pipeline
assets."

HEP has operations in six oil and gas development regions including the
Texas Gulf Coast, the STACK in Oklahoma, the Eagle Ford in South Texas,
the Delaware in West Texas and southern New Mexico, the Marcellus in
Pennsylvania, and Mexico via the Nueva Era Pipeline.

About Howard Energy Partners

San Antonio-based Howard Midstream Energy Partners, LLC d/b/a Howard
Energy Partners is an independent midstream energy company, owning and
operating natural gas and crude oil gathering and transportation
pipelines, natural gas processing plants, liquid storage terminals,
deep-water port facilities, rail facilities and other related midstream
assets in Texas, New Mexico, Oklahoma, Pennsylvania and Mexico. The
company has corporate offices in San Antonio, Houston and Mexico City.
For more information on Howard Energy Partners, please visit our website www.howardenergypartners.com.

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