Evolution Midstream has entered into an agreement to acquire with Lucid Energy Group to acquire Rowdy Gas Gathering System for undisclosed sum.
Located in Wyoming’s Powder River Basin, the Rowdy system serves oil and gas producers in Campbell, Converse and Johnson counties.
It consists of nearly 1,000 miles of gas gathering lines and 43,700 horsepower of compression.
Evolution CEO Raj Basi said: “We see a significant opportunity in the Powder River Basin, where there is increasing activity and focus by producers seeking entry into an exciting, stacked play.
“The acquisition of the Rowdy System is the first step in developing our comprehensive vision for gas gathering, treating and processing in the area.”
The acquisition is expected to be completed by 1 July 2017.
The acquired assets, with their extensive footprint, are expected to offer a foundation for additional growth opportunities for Evolution.
Evolution is in plans to initiate an extensive capital program to expand system capacity and reach. The expansion is aimed at offering producers of all sizes a comprehensive gas gathering and processing solution, as well as crude gathering services.
Evolution business development senior vice president Preetam Dandapani said: “Our focus has always been to provide reliable, cost-effective and flexible midstream solutions for producers’ gas in the Rockies, and the Powder River Basin is an exciting place to start.
“We are looking forward to working with the producers currently served by the Rowdy System and will continue expanding our footprint and capabilities to meet the needs of others in the area.”
Based in Denver and founded in 2015, Evolution is an independent midstream company that serve oil and gas producers operating in unconventional shale plays in the Rocky Mountain region.