Salt Creek Midstream Announces Pecos II Plant Is in Service

Salt Creek Midstream, LLC (“Salt Creek” or the “Company”), a portfolio company owned by funds managed by the Private Equity Group of Ares Management, L.P. (“Ares”) and ARM Energy Holdings, LLC (“ARM Energy”) today announced that its Pecos II cryogenic processing plant is now in service. The 200 MMcf/d Pecos II plant is Salt Creek’s second cryogenic processing facility at its Pecos, TX location. Salt Creek now has 400 MMcf/d of installed natural gas processing capacity and is capable of processing over 30,000 BPD of natural gas liquids (NGLs).

“We are pleased to place our Pecos II plant in service and to make available a significant amount of incremental natural gas processing capacity for Permian producers. This milestone achievement demonstrates our commitment to operational excellence and to providing incomparable value for our producer customers,” said Zach Lee, ARM Energy Chief Executive Officer.

Salt Creek is one of the largest privately-owned gas gatherer and processors in the Delaware Basin, with over 400,000 dedicated acres procured, approximately 58,000 horsepower of installed compression and a 400 mile, 1.4 Bcf/d gathering network. Salt Creek is uniquely positioned to offer Delaware Basin producers access to critical takeaway pipelines at the Waha Hub and firm deliveries to the West Coast and Mexico as well as downstream LNG markets.

As Salt Creek continues to develop and grow its world-class midstream assets, the Company will continue to recruit talented and experienced individuals to its operational team, which currently includes over 60 people to run the facilities.

About Salt Creek Midstream, LLC

Formed in 2017, Houston-headquartered Salt Creek Midstream, LLC is a joint venture of ARM Energy Holdings, LLC and funds managed by the Private Equity Group of Ares. Salt Creek is a full service midstream provider in the Delaware Basin, offering natural gas and crude gathering, compression, cryogenic processing and treating services, as well as water gathering services across nearly 1 million acres in Texas and New Mexico.

About ARM Energy Holdings, LLC

Headquartered in Houston, with offices in Calgary, Denver, and Midland, ARM Energy Holdings, LLC is a premier producer services firm, active in every sector of the energy value chain across all major North American oil and gas basins. Its integrated, diversified portfolio includes Asset Risk Management, LLC, providing risk management and hedging strategies for producers; ARM Energy Management LLC, providing physical oil and gas marketing, transportation and asset management services and trading; and ARM Midstream, LLC, providing midstream investment, infrastructure development and operations. For more information, please visit www.armenergy.com.

About Ares Management, L.P.

Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $121.4 billion of assets under management as of June 30, 2018 and 18 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit www.aresmgmt.com.