Sugar Land, Texas-based Rangeland Energy is offloading crude and condensate pipeline assets to a Canadian midstream player.
Rangeland, along with financial backer EnCap Flatrock Midstream, agreed to sell Rangeland Midstream Canada Ltd. to Calgary-based Kingston Midstream Alberta Ltd. in an all-cash transaction, the companies announced Sept. 5.
Financial terms of the deal were not disclosed; Hart Energy has reached out to Rangeland for more information.
The deal includes the Marten Hills Pipeline System, which contains two 51-mile crude oil and condensate pipelines in the Clearwater play of northwest Alberta. The Marten Hills system began construction in October 2019 and began service in July 2020.
“We brought our pipeline into service during the most extraordinarily uncertain oil price environment the market had ever experienced, and our team worked closely with our customers through that challenging period,” said Rangeland Midstream Canada President Briton Speer in a news release. “We would like to thank our field team in Athabasca who have operated these assets with the utmost professionalism and have a flawless safety record to show for it.”
Rangeland said its field employees and Athabasca office will integrate with Kingston after the deal closes, which is expected by the end of the third quarter.
Financial sponsor EnCap Flatrock Midstream was established in 2008 through a partnership between private equity firm EnCap Investments LP and Flatrock Energy Advisors. Morriss Hurt, COO and managing partner at EnCap Flatrock Midstream, said it was the firm’s third successful realization with Rangeland and its first in Canada.
Last year, Rangeland secured a $300 million equity commitment from EnCap Flatrock Midstream to launch Rangeland IV. In addition to developing opportunities in conventional and unconventional plays in the U.S. and Canada, the fourth Rangeland company is also pursuing midstream acquisitions.
“We are committed to continuing our brand and midstream development activities in Canada with our second company, Rangeland Midstream Canada II,” said Rangeland Energy CEO Chris Keene in the release.
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