Silver Creek Midstream, LLC, a private midstream company located in Irving, Texas, has announced that it has closed the acquisition of the Powder River Basin Midstream Assets and the associated crude oil gathering system and facility assets from Genesis Energy L.P. for approximately US$300 million. Completed in partnership with Silver Creek's financial sponsor, Tailwater Capital, and Energy & Minerals Group, this acquisition will significantly enhance Silver Creek's footprint in the Powder River Basin (PRB) in order to better serve its customers.
The company has experienced meaningful growth over the past year, having closed on both the acquisition of the Red Butte Pipeline System in December 2017 and the acquisition of the Tallgrass Gathering System in February 2018, which offered the company an immediate presence in the PRB and provided a strategic 50 mile footprint in the core of the region. At that time, Tailwater also announced a joint venture with Tallgrass Energy Partners to develop the Iron Horse Pipeline to transport crude oil from the PRB to Guernsey, Wyoming.
The Powder River Basin Midstream Assets will be a critical addition to the Silver Creek portfolio and should accelerate Silver Creek's ability to provide a full suite of crude services to producers in the core of the basin. Pro forma for the acquisition, Silver Creek Midstream now owns over 250 miles of crude trunkline and gathering pipelines with multiple interconnections to downstream markets out of Guernsey. Silver Creek has significant plans for additional growth in and around the system.
"This acquisition represents a tremendous opportunity for Silver Creek," said, J. Patrick Barley, Founder and Chief Executive Officer of Silver Creek Midstream. "The addition of Genesis' Powder River Basin pipeline system, along with the associated crude oil gathering and rail facility, allows us to meet the evolving needs and growing demand of our customer base in the region."
"It has been exciting to partner with Silver Creek since its formation in October 2017 and to support their growth over the past year," said Stephen Lipscomb, Principal at Tailwater Capital. "The Genesis Powder River Basin acquisition gives Silver Creek a unique footprint to provide premium crude takeaway solutions for our various customers. Drilling activity in the Powder River Basin continues to gain momentum and we are excited to be a part of that growth going forward."
Read the article online at: https://www.worldpipelines.com/business-news/12102018/silver-creek-midstream-closes-acquisition-of-powder-river-basin-midstream-assets/