The acquisition is expected to expand Caliber’s crude oil gathering and transportation service lines and widen its area of operations within McKenzie County, North Dakota
Image: Caliber owns and operates 368miles (590km) of pipeline across its four service lines in McKenzie. Photo courtesy of Alexander Redmon/Freeimages.com
US-based independent energy company Caliber Midstream Holdings has announced the acquisition of the North Dakota assets from American Midstream Partners, a diversified portfolio of midstream energy assets manager.
The North Dakota assets involved in the acquisition include a FERC-regulated crude oil gathering and pipeline transportation system comprising of a 47-mile (75km) pipeline and related facilities.
The facilities included in the transaction are capable of transporting crude oil to the Tesoro High Plains Pipeline and the Energy Transfer Dakota Access Pipeline, apart from possessing the capability to receive volumes through its truck rack.
In addition, the system offers flexibility and access to the refinery, rail and pipeline markets for the regional producers.
The acquisition of assets would strengthen Caliber’s operations in North Dakota
Caliber said that the acquisition is expected to expand its crude oil gathering and transportation service lines and widens area of operations within McKenzie County, North Dakota.
With the acquisition, the company owns and operates 368 miles (590km) of pipeline across its four service lines in McKenzie County, North Dakota. It is also planning to additional 11 miles (18km) to its crude gathering and transmission system by the end of 2019.
Caliber Chief Executive Officer and President Daniel Werth said; “This bolt-on acquisition is another step in executing our growth strategy. Our goal is to become a top-tier midstream company. We want to be the partner of choice across all aspects of our business, from crude oil gathering and transportation, natural gas gathering and processing services to freshwater sourcing and produced water management.
“This acquisition will help us achieve our goal by providing added scale and by allowing us to facilitate new commercial opportunities to deliver innovative and cost-effective solutions for our customers.”
For the transaction, Holland & Hart served as legal counsel for the company.
Caliber is an energy infrastructure company that offers midstream services to producers in the Bakken and Three Forks shale oil plays. Its services include crude oil and natural gas gathering, transportation, treating and processing; produced water transportation and disposal; and freshwater sourcing and transportation by pipeline.