Harvest Midstream, a US-based privately held midstream service provider, has signed a purchase and sale agreement with Ares Management funds to acquire Paradigm Midstream.
The financial terms of the deal were not disclosed.
Headquartered in Texas, Paradigm Midstream caters to crude oil, natural gas and natural gas liquids (NGL) producers across North American Shale plays.
The midstream company has assets located in the Bakken Shale of North Dakota, and the Eagle Ford Shale of South Texas. It was acquired by Ares Management from an affiliate of Stonepeak Infrastructure Partners in late 2018.
Paradigm Midstream’s North Dakota and South Texas assets include four fully-owned gathering systems, which are the Charlson Gathering System, Van Hook Gathering System, Eagle Ford Gathering System, and the Mountrail Gathering System.
The Bakken Shale assets transport around 100,000 barrels of oil per day and nearly 75 million cubic feet per day (MMcf/d) of natural gas.
The South Texas Eagle Ford Gathering System assets of Paradigm Midstream transport around 14,000 barrels of oil per day. The assets include nearly 563km of trunk lines and gathering lines for oil, gas, and water.
The deal also includes the ownership stakes of Paradigm Midstream in two joint ventures with Phillips 66. The joint ventures own 100% of the Keene and Palermo storage terminals in North Dakota and 99% of the 151km long Sacagawea crude lines as well as the 38.6km long Blue Buttes gas pipeline.
Harvest Midstream CEO Jason Rebrook said: “The Paradigm Systems are a perfect fit for Harvest’s expanding network of first-class midstream assets.
“Not only does this acquisition allow Harvest to further extend its footprint in the Eagle Ford, but with its systems in North Dakota, we will now expand our geographic presence into one of the country’s premier, high-quality basins.”
The deal, which is subject to regulatory approvals, is anticipated to close in Q2 2023.
