Great Salt Plains Midstream Holdings LLC said May 4 it recently closed on its acquisition of Thunderbird Midstream LLC, continuing the company's buildout of infrastructure in Oklahoma's Stack play.
The acquired assets include the Thunderbird Midstream cryogenic natural gas plant with 20 million cubic feet per day (MMcf/d) of natural gas processing capacity and a 34-mile natural gas pipeline gathering system. The plant began operations in 2016 and is located on more than 40 acres to allow for expansion to meet increased demand.
Great Salt Plains Midstream said the Thunderbird assets provide immediate processing capacity with additional firm market outlets for residue and NGL.
“We are adding to our system to serve multiple producers in the northwest portion of the Stack,” Rusty Rains, CEO of Great Salt Plains Midstream, said in a statement. “We are now offering immediate natural gas processing services. The additional gathering pipeline from Thunderbird extends our system west into Major County, providing producers with low-pressure gathering and additional residue market optionality.”
Terms of the transaction weren't disclosed. Capital partners for the deal are energy logistics company MVP Holdings LLC and funds affiliated with Energy Spectrum Capital and Apollo Global Management LLC.
Paul Hastings LLP served as legal counsel to Great Salt Plains Midstream for the transaction.
Great Salt Plains Midstream is a joint venture formed in late 2017 by MVM Midstream LLC—an entity formed by Energy Spectrum and MVP Holdings—and a subsidiary of Chisholm Oil & Gas LLC to provide midstream services to producers in the Stack play.
The Oklahoma City-based company has a cryogenic processing facility under construction in Major called the Silver Lake Plant, which will have an initial capacity to process up to 70 MMcf/d and expansion capacity of up to 220 MMcf/d. Additionally, Great Salt Plains Midstream is constructing more than 90 miles of natural gas gathering pipelines and multiple compressor stations and expects the new facilities to be in service in July.
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