[Context: On July 30, privately held Harvest Midstream, an affiliate of Hilcorp Energy, announced plans to acquire San Juan Basin midstream assets for $1.125bn form Williams (NYSE: WMB). Further details and related links are below.]
HARVEST MIDSTREAM | HILCORP
Harvest Midstream Agrees to Acquire Four Corners Area Assets from Williams Partners, L.P.
HOUSTON–July 30, 2018–(BUSINESS WIRE)–Today, Harvest Midstream Company, an affiliate of Hilcorp Energy Company, announced the acquisition of the Four Corners Area assets from Williams Partners L.P. for $1.125 billion.
“This is an important investment for Harvest and part of our continued commitment to the Four Corners region. We believe this will be a significant economic benefit for the community,” said Jason Rebrook, CEO of Harvest Midstream Company. “Our focus is on becoming the premier midstream services provider in the San Juan by reliably serving all of our customers.”
The system encompasses more than 3,700 miles of pipeline, two gas processing plants, and one CO2 treating facility in the counties of San Juan and Rio Arriba, New Mexico and La Plata, Colorado. It has an inlet gathering capacity of 1.8 billion cubic feet of gas per day.
“Harvest Midstream is a company committed to customer service and the safe, efficient and reliable transportation of natural gas and oil,” said Sean Kolassa, President of Harvest Midstream Company. “We are excited about the potential for growth in the region and the opportunity for increased investment into this system in the future.”
The parties to this transaction expect to complete the sale of these assets within the next few months pending various regulatory approvals.
Harvest Midstream Company:
Harvest Midstream Company, formerly Harvest Pipeline Company, is a privately held midstream services provider based in Houston, TX. Harvest operates crude oil and natural gas gathering, storage, transportation, treatment and terminalling assets across the Lower 48 and Alaska.
Williams & Williams Partners:
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure connecting U.S. natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams owns approximately 74 percent of Williams Partners L.P. (NYSE: WPZ). Williams Partners is an industry-leading, large-cap master limited partnership with operations across the natural gas value chain including gathering, processing and interstate transportation of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas.