What Canes Midstream does

Canes Midstream LLC is a private, Dallas-based midstream oil and gas services company founded in November 2019 by Scott Brown and Chad Choate with an initial equity commitment from EIV Capital and management. The company provides an integrated suite of midstream services — including natural gas gathering, dehydration, compression, CO2 treating, nitrogen rejection, cryogenic processing, crude oil gathering, condensate stabilization, and NGL transportation — to oil and gas producers operating in the Permian Basin, with assets concentrated in the Midland Basin across 10 Texas counties.

The company's physical infrastructure includes approximately 900 miles of low-pressure gas gathering pipeline, five active natural gas processing plants with total capacity of 570,000 Mcf/d (anchored by the Big Lake Processing Complex in Reagan County at 480,000 Mcf/d and the Silver Processing Complex in Sterling County at 90,000 Mcf/d), 250,000 horsepower of compression, and 80,000 barrels per day of crude oil gathering capacity. The processing facilities use UOP Russell cryogenic technology for high NGL recovery, and the system utilizes electric driven compression and Optical Gas Imaging-based leak detection. An approximately 25-mile residue gas pipeline connects the Big Lake complex to Kinder Morgan's Gulf Coast Express Pipeline and Permian Highway Pipeline, with takeaway capacity exceeding 400 MMcf/d to Gulf Coast markets and a potential future connection to Whitewater Midstream.

Canes generates revenue through usage-based fees on gas gathering and processing, crude oil gathering, and NGL transportation, with transaction-based fees on residue gas delivery to downstream pipelines. The customer base consists of enterprise oil and gas producers in the Midland Basin, served through long-term acreage dedications and direct B2B commercial relationships. In May 2022, Canes acquired Cogent Midstream, which materially expanded its asset base, brought Denham Capital in as a co-sponsor alongside EIV Capital and Trace Capital Management, and was followed by the additions of COO Mike Hicks and CFO Dan Westcott. In March 2023, the company amended and extended its credit facility to a $415 million single revolver with Wells Fargo as administrative agent, maturing in February 2027.

Name

Canes Midstream

Legal name

Canes Midstream LLC

Website

https://canesmidstream.com

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

1–10 employees

Short description

Canes Midstream is a private, PE-backed midstream oil and gas company operating approximately 900 miles of pipeline and 570,000 Mcf/d of natural gas processing capacity in the Permian/Midland Basin, delivering gathering, processing, compression, crude transportation, and NGL services to oil and gas producers.

Ownership category

akta.pro rank

Product category

Midstream Oil & Gas Services

NAICS

Pipeline Transportation of Natural Gas (486210), Pipeline Transportation of Crude Oil (4861)

SIC

Natural Gas Transmission (4922), Pipe Lines (No Natural Gas) (4610)

akta.pro primary industry

Oil & Gas Midstream & Pipeline O&M (Pipelines, Compressor Stations) (EUAEAGAF)

akta.pro secondary industries

Pipeline Operations, Integrity & Control (SCADA, Pigging, Leak Detection) (EUALADAK), Gas Metering, Measurement & Custody Transfer (EUAAACAJ)

Keywords

• Midstream oil and gas
• Natural gas processing
• Crude oil gathering
• Gas pipeline operations
• NGL transportation

Headquarters

HQ city

Dallas

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Natural Gas Gathering and Processing: Provides low-pressure gas gathering, dehydration, compression, CO2 treating, nitrogen rejection, and cryogenic processing services. Revenue is generated based on volumes of natural gas processed and gathered, serving producers in the Midland Basin.
2. Crude Oil Gathering: Crude oil gathering by pipeline and third-party condensate stabilization services with capacity of 80,000 barrels per day.
3. NGL Transportation: Natural gas liquids transportation solutions as part of the full suite of midstream services.
4. Residue Gas Delivery: Delivery of residue gas from processing complexes to interconnect pipelines including Kinder Morgan's Gulf Coast Express Pipeline and Permian Highway Pipeline.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Canes Midstream operates midstream oil and gas infrastructure in the Midland Basin, providing natural gas gathering via approximately 900 miles of pipeline, cryogenic natural gas processing with 570,000 Mcf/d capacity across five active plants, 250,000 Hp of compression, crude oil gathering with 80,000 barrels per day capacity, and residue gas delivery to major downstream pipelines including Kinder Morgan's Gulf Coast Express and Permian Highway pipelines. Services are delivered to oil and gas producers through long-term acreage dedications and tailored commercial arrangements.

Product overview

Canes Midstream is a full-service midstream oil and gas company offering an integrated suite of midstream services to upstream, midstream, and downstream customers in the Permian Basin. The portfolio includes natural gas gathering via approximately 900 miles of pipeline, cryogenic processing at the Big Lake Processing Complex (480,000 Mcf/d) and Silver Processing Complex (90,000 Mcf/d) for a total of 570,000 Mcf/d capacity, 250,000 Hp of compression, crude oil gathering (80,000 barrels per day), condensate stabilization, CO2 treating, nitrogen rejection, and NGL transportation. The company expanded significantly through the 2022 acquisition of Cogent Midstream, which added assets in the Southern Midland Basin including 800+ miles of pipelines and 42 compressor stations. Services are delivered across Coke, Crockett, Glassock, Irion, Mitchell, Reagan, Schleicher, Sterling, Tom Green, and Upton counties in Texas.

Differentiator

Problem solved

Functional benefit

Quantifiable outcome

• Canes processes 570,000 Mcf/d of natural gas and gathers 80,000 barrels per day of crude oil through its extensive pipeline network.

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered minor and core.

• Sidley Austin LLPminorOthers · 25 May 2022Sidley Austin LLP acted as corporate counsel to Canes during the acquisition of Cogent Midstream.
• Kinder MorgancoreTechnology or IntegrationCanes operates an approximately 25-mile residue gas pipeline connecting to Kinder Morgan's Gulf Coast Express Pipeline (GCX Pipeline) and Permian Highway Pipeline (PHP) for delivery of processed natural gas to Gulf Coast markets.
• Whitewater MidstreamminorStrategic or Co-development PartnerCanes has a possible future pipeline connection to Whitewater Midstream's pipeline system, indicating potential future partnership for residue gas delivery.

Scale indicators8 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Crestwood Equity Partners: Publicly-traded midstream partnership with Permian Basin gathering, processing, and NGL operations. Comparable scale and service offering to Canes, with similar producer customer base.
• Targa Resources Corp: Large publicly-traded midstream company with significant Permian Basin natural gas processing and NGL operations. Direct competitor in the same gathering and processing category serving overlapping producer customers in the Permian.
• DCP Midstream: Major Permian Basin natural gas processor and NGL producer with significant gathering and processing operations in the Midland Basin. Directly comparable in core G&P service offerings and basin focus.
• Plains All American Pipeline: Large publicly-traded midstream company with significant Permian crude oil gathering operations. Direct comp for Canes' 80,000 bbl/d crude oil gathering business, though much larger and more diversified.
• Western Midstream Partners: Pure-play Permian-focused midstream MLP with substantial gas processing, gathering, and crude oil transportation in the Delaware and Midland Basins. Closest publicly-traded peer in terms of geographic focus and service mix.
• EnLink Midstream: Publicly-traded midstream company with natural gas and crude gathering and processing operations across multiple basins including the Permian. Similar integrated service model targeting upstream producers.

Broad incumbents

• Kinder Morgan: Largest US natural gas pipeline operator and existing interconnect partner via GCX and PHP pipelines. A potential strategic acquirer of midstream G&P assets seeking Permian residue gas supply for its long-haul pipeline network.
• Energy Transfer LP: One of the largest and most diversified midstream operators in the US with extensive Permian Basin presence. Canes management has historical ties to Energy Transfer (multiple executives previously worked there), and the company is a potential strategic acquirer.
• Enterprise Products Partners: Major diversified midstream operator with extensive Permian NGL and natural gas processing operations. Comparable in service mix but operates at much larger scale and broader geographic footprint.

Emerging players

• Whitewater Midstream: Emerging Permian natural gas pipeline and processing company. Identified as a potential future pipeline connection partner for Canes' residue gas delivery system.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries1 record

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Canes Midstream