Cardinal Midstream has entered into definitive agreements to acquire certain natural gas midstream assets from Antero Resources for $268m.
The assets gather, treat, dehydrate and process natural gas produced from the Arkoma Woodford shale in eastern Oklahoma.
Cardinal will acquire Antero’s 60% interest in Centrahoma Processing, a joint venture with MarkWest Energy.
Centrahoma operates two cryogenic processing plants with 100mmcfd of processing capacity and an NGL pipeline that connects the two plants located in Coal and Atoka counties in Oklahoma.
As throughput at Centrahoma increases, Cardinal will more than double its processing capacity in the area with a new 120mmcfd cryogenic processing plant to be installed in 2011.
The transaction also includes Antero’s Northern Front Gathering System that delivers liquids-rich natural gas to the Centrahoma processing plants.
Cardinal will also acquire Antero’s East Rockpile Gathering System in Pittsburgh County, Oklahoma, and the system gathers lean natural gas and delivers it to an amine treating and compression complex.