Silver Creek Midstream has completed the $300m acquisition of Genesis Energy’s Powder River Basin (PRB) midstream assets in the US.
Silver Creek is backed by financial sponsors Tailwater Capital and The Energy & Minerals Group.
The acquisition will increase Silver Creek’s presence in the PRB, and also includes associated crude oil gathering systems and facility assets.
Silver Creek gained access to the PRB through the acquisition of the Tallgrass gathering system in February. This transaction provided a significant position in the core of the region.
In December last year, the company purchased the Red Butte pipeline system.
Silver Creek Midstream founder and CEO Patrick Barley said: “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.
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By GlobalData“Upon closing of this transaction, Silver Creek will have over 330,000 acres dedicated to our system long-term, and we anticipate growing these dedications further in the coming months as we expand the system geographically.”
The acquisition of the PRB midstream assets is expected to boost Silver Creek’s crude service offering to producers in the basin’s core.
The company’s portfolio now includes more than 190 miles of crude trunk line and gathering pipelines with access to downstream markets out of Guernsey.
Tailwater Capital principal Stephen Lipscomb said: “The Genesis Powder River Basin acquisition gives Silver Creek a unique footprint to provide premium crude takeaway solutions for our various customers.”
Following the acquisition, Silver Creek has more than 190,000bpd of initial pipeline capacity from the Silver Creek Pronghorn Terminal to the Guernsey Hub. The company has plans to expand the capacity to more than 325,000bpd.
The company will begin construction in the fourth quarter of this year to initially add 52 miles of crude pipelines and more than 100,000 barrels of additional storage.
Genesis will use proceeds from the transaction to cut the balance outstanding under its revolving credit facility.
