HCH Delaware Basin Macro Revenue Implications

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Recent reports indicate that Kinetik Holdings, a leading gas pipeline operator in the Delaware Basin with approximately 4,600 miles of infrastructure, is evaluating a potential sale following preliminary interest from Western Midstream Partners, a company backed in part by Occidental Petroleum.

This development comes amid sustained strength in U.S. natural gas production, expanding LNG export capacity, and increasing power demand driven by data centers and industrial electrification. These structural forces have accelerated consolidation across the midstream sector as operators seek scale, efficiency, and long-duration reserve alignment.

For HCH Capital Group, a division of Moore Capital Holdings, this potential transaction reflects a broader and enduring shift within the Permian Basin — particularly in the Delaware Basin, one of North America’s most economically resilient energy regions. Infrastructure scale and integration are becoming increasingly important as access to gathering, processing, and takeaway capacity directly influences long-term value creation.

Consolidation at this level may support stronger valuation benchmarks across the basin while also reinforcing the competitive importance of strategic infrastructure relationships. Larger midstream platforms can enhance operational efficiencies and capital access, but they also reshape the competitive landscape for upstream producers and infrastructure participants.

Moore Capital Holdings has long maintained a disciplined, economically driven investment philosophy grounded in operational expertise and durable cash-flow assets. Developments such as this affirm the structural strength of natural gas as a foundational energy source supporting domestic security, global exports, and technological expansion.

HCH Capital Group continues to monitor activity across the Permian Basin with a long-term perspective, remaining committed to prudent capital allocation, operational discipline, and responsible participation in opportunities aligned with our enduring principles of stability, performance, and generational stewardship.