Outrigger Energy II LLC announced the sale of DJ Basin midstream system in Weld County, Colo. to Summit Midstream Partners LP on Dec. 1.
Summit Midstream said in a separate Dec. 1 press release that it had acquired Outrigger’s assets along with infrastructure from Sterling Energy Investments LLC, Grasslands Energy Marketing LLC and Centennial Water Pipelines LLC for a total of approximately $305 million in cash. Further financial details weren’t disclosed.
The recently sold Outrigger system includes a 60 MMcf/d cryogenic natural gas processing plant with product distribution to the Cheyenne Plains gas pipeline and DCP Midstream LP’s NGL system.
Outrigger’s system also includes:
- 70 miles of low-pressure natural gas gathering pipelines;
- 90 miles of high-pressure natural gas gathering pipelines;
- 12,800 hp of field and plant compression; and
- 30 miles of crude oil gathering pipelines with transportation to the Pony Express Pipeline.
The DJ system’s high-pressure gas gathering footprint will now provide Summit with a connection to multiple midstream systems in the DJ Basin, Outrigger president and CEO Dave Keanini said in a company release.
Outrigger focus shifts to Williston Basin system
With the sale, Outrigger will now concentrate on developing its Williston Basin midstream system in Williams and Mountrail counties, N.D. Positioned to provide reliable service to upstream as well as other midstream operators in the basin, its 24-inch and 20-inch diameter pipeline extends over 100 miles and has a capacity of approximately 450 MMcf/d.
The Williston Basin system pipeline services multiple customers at various points after extending the high pressure, rich gas pipeline from east Williams County into Mountrail County.
Since beginning permanent operation status in June, Outrigger’s 250 MMcf/d Bill Sanderson cryogenic gas processing plant west of Williston, N.D., maintains near 100% runtime. It has ethane recovery and rejection capabilities with direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for NGL.
With the system capable of servicing several thousand drilling locations, Outrigger expects gas deliveries to the company’s system to grow throughout 2023. Outrigger has begun scoping the next processing expansion at the Sanderson plant to handle producers increasing gas volumes through the drill bit and GOR increases.
Summit Midstream initially announced the various transactions in October.
RBC Capital Markets was lead financial adviser on the Outrigger DJ acquisition. TD Securities was lead financial adviser on the Sterling DJ acquisition. Locke Lord LLP served as legal adviser to Summit.
Evercore served as exclusive financial adviser and Vinson & Elkins LLP served as legal adviser to Outrigger Energy II LLC. TPH & Co., the energy business of Perella Weinberg Partners, served as exclusive financial adviser and Vinson & Elkins LLP served as legal advisor to Sterling Investment Holdings LLC.
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