Crestwood Midstream is acquiring Arrow Midstream for $750 million. The deal will make Crestwood Midstream one of the largest Bakken midstream companies. The deal builds on the recent acquisition of Inergy Midstream that closed on Monday, October 7th.
“We are very excited about the addition of the Arrow assets to Crestwood’s rapidly expanding crude services business and our Bakken Shale footprint,” stated Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood’s general partner. “.....The Bakken Shale is a core area for our future growth, and by extending our platform upstream of COLT, Crestwood will be expanding and optimizing the full suite of liquids value chain services we can provide for both our producer and demand-side customers.”
Arrow Midstream's assets are located on the Fort Berthold Indian Reservation and include:
- 150 miles of crude oil pipelines moving 50,000 b/d
- 160 miles of natural gas gathering lines moving 15 mmcfd
- 150 miles of water gathering lines moving 8,500 b/d
- Saltwater disposal wells
- Central delivery point with multiple pipeline outlets
- Automate truck loading facility
The assets are supported by operator commitments from 150,000 acres in Dunn and McKenzie counties. Current and future plans call for the expansion of capacity to 125,000 b/d of oil, 100 mmcfd, and 40,000 b/d of water.
After the close of this transaction, we will be one of the largest Bakken midstream service providers servicing approximately 18% of current total Bakken crude oil production. Nationwide, we will be handling over 470,000 Bbls/d of crude oil and NGLs in addition to over 2 billion cubic feet per day of natural gas through our gathering systems and transportation assets."