Blackstone-backed pipeline company EagleClaw Midstream Ventures LLC said on Wednesday it would buy rival Caprock Midstream Holdings for about $950 million, strengthening its presence in the oil-rich Permian Basin.

A surge in oil and gas production in the Permian basin of west Texas and New Mexico has outstripped transport capacity and has encouraged midstream companies to invest in the region.

EagleClaw, which said it is the largest privately held midstream operator in the Permian’s Delaware Basin in west Texas, will buy Caprock from Dallas-based private equity firm Energy Spectrum Capital and Caprock Midstream Management.

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