Page 6 - NorrthAmOil Week 43 2021

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Midstream players strike

midstream mega-deals

US PIPELINE operator Crestwood Equity Part- “Importantly, we are completing this trans-
ners announced this week that it had struck a action during a period when macro oil and gas
deal to buy Oasis Midstream Partners, the mid- fundamentals are exceptionally supportive of
stream unit of Oasis Petroleum, in a deal valued upstream development and there is increasing
at roughly $1.8bn, including the assumption of demand for midstream infrastructure and ser-
debt. The news emerged days after Altus Mid- vices,” stated Crestwood’s chairman, president
stream announced that it would merge with and CEO, Robert Phillips.
BCP Raptor, the parent company of EagleClaw The transaction will largely be equity
Midstream, to create an entity with an enterprise financed, with around 33.8mn of newly issued
value of around $9bn. Crestwood common units and $160mn in cash.
The deals come as oil prices remain at mul- It is expected to close in the first quarter of 2022.
ti-year highs. Upstream consolidation has Meanwhile, the Altus-BCP transaction is a
already been playing out across the US shale reverse merger, allowing privately owned BCP
industry since the second half of last year, and to become a public company. The deal will hand
is now slowing, but the new transactions illus- control of Altus to BCP’s backers – private equity
trate the fact that there is potential for midstream firm Blackstone and infrastructure investor I
deal-making too. Squared Capital. The new
In Crestwood’s case, the acquisition of Oasis The combined company will become the
will boost its position in the Williston Basin, as largest integrated midstream operator in the transactions
well as the Permian’s Delaware sub-basin. The Delaware Basin, and will become the major-
Williston additions are particularly significant, ity owner of the Permian Highway natural gas illustrate the
doubling the inventory of Tier 1 drilling loca- pipeline.
tions dedicated to Crestwood’s assets to around “The combination creates the largest pure- fact that there
1,200 locations across 535,000 dedicated acres play midstream company in one of the world’s is potential for
(2,165 square km). The transaction further most prolific hydrocarbon basins, providing
expands Crestwood’s footprint into the western the scale, operational capabilities and fully inte- midstream deal-
and northern parts of the basin. grated service offerings necessary for long-term
“As the commodity price outlook remains success,” stated EagleClaw’s president and CEO, making too.
favourable for an acceleration of activity across Jamie Welch. “The pro forma enterprise is well
the basin, this expanded footprint positions positioned to capitalise on accelerating activity
Crestwood to more aggressively pursue third- in the Delaware Basin with expanded process-
party volumes and incremental bolt-on con- ing and transportation capabilities for all three
solidation opportunities to further optimise streams from the wellhead to end markets. The
utilisation of existing infrastructure,” Crestwood combined business will have a more diversified
stated. asset profile and customer base, with a lower
The midstream assets will continue to serve risk profile than either entity on a stand-alone
Oasis Petroleum, and Crestwood noted that it basis.”
expects the producer to pursue continued devel- The transaction is also anticipated to close in
opment in the Williston’s Bakken play. the first quarter of 2022.™

P6 www. NEWSBASE .com Week 43 28•October•2021