Enable Midstream Is Planning an IPO - Bakken Gathering Assets Included

Enable Midstream's Gathering and Processing Assets
Enable Midstream's Gathering and Processing Assets

Enable Midstream (ENBL) has filed for an initial public offering and expects to raise net proceeds of $500 million to be used in expansion projects. The company will trade as a master limited partnership (MLP).

The deal includes Bakken gathering assets that were contributed by CenterPoint Energy.

The gathering system commenced operations in November 2013 and is expected to be in full operation in the third quarter of 2014. Enable Midstream estimates it could spend as much as $110 million on the Bakken system.

The company's Bakken system will have capacity of 19,500 b/d when fully operational and that entire amount is contracted through 2028. While only partially in service for most of the year, Enable estimates it will gather a little less than 10,000 b/d in 2014.

The company was formed in May of 2013 by affiliates of CenterPoint Energy, OGE Energy and ArcLight Capital Partners. The assets include CenterPoint's interstate pipelines and field services, as well as OGE's midstream business.

Enable Midstream is managed by a general partner whose governance is shared by CenterPoint Energy and OGE Energy on a 50/50 basis.

About Enable Midstream

Enable Midstream owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable Midstream's initial assets include approximately 11,000 miles of gathering pipelines, 11 major processing plants with approximately 1.9 billion cubic feet per day of processing capacity, approximately 7,800 miles of interstate pipelines, approximately 2,300 miles of intrastate pipelines and eight storage facilities comprising 86.5 billion cubic feet of storage capacity.

Read the full press release at oge.com

Oneok Investing More In Bakken Midstream Infrastructure

Oneok North Dakota Bakken Asset Map
Oneok North Dakota Bakken Asset Map

Oneok is planning another $650-780 million in infrastructure investments in the Bakken.

The company will expand its Bakken NGL Pipeline, expand gathering & compression in the area, and build a seventh NGL processing plant in McKenzie County, ND.

Oneok will spend $100 million to expand the Bakken NGL pipeline that came online in April of 2013. The pipeline was originally planned with capacity of 60,000 b/d and is currently being expanded to 135,000 b/d. This will mark the second expansion and grow capacity to 160,000 b/d.

The Lonesome Creek processing plant (200 mmcfd) will have a price tag of $320-390 million and the expansion of gathering infrastructure is estimated to cost $230-290 million.

Production in the Williston Basin continues to increase with no signs of leveling off or slowing,” said Terry K. Spencer, president. “The new Lonesome Creek plant and related infrastructure will be well-positioned to capitalize on existing ONEOK Partners assets and provide producers in the area with essential natural gas processing capacity....

Oneok will have approximately 800 mmcfd of processing capacity in North Dakota when the Lonesome Creek Plant is completed.

Three of the seven planned plants are yet to be completed. The Garden Creek II and III are under construction and ground will be broken on the Lonesome Creek Plant soon.

  1. Grasslands (90 mmcfd)
  2. Garden Creek I (100 mmcfd) online December 2011
  3. Stateline I (100 mmcfd) completed September 2012
  4. Stateline II (100 mmcfd) expected April 2013
  5. Garden Creek II (100 mmcfd) expected completion Q3 2014
  6. Garden Creek III (100 mmcfd) expected completion Q1 2015
  7. Lonesome Creek (200 mmcfd) expected in late 2015


Summit Midstream Expanding Bakken System In Williams & Divide

Summit Midstream plans to spend $60 million to expand its Divide crude oil and water gathering system in Williams and Divide counties. The system includes 90 miles of crude oil gathering pipe already and an additional 145 miles of pipe is being added. The expansion will be able to handled 45,000 b/d of crude oil and 45,000 b/d of water.

Summit purchased Bison Midstream and associated gas gathering for $250 million earlier in June

The execution of this new commercial agreement reflects the next step in our growth strategy to expand our presence in the Bakken Shale Play through organic development projects.
— Steve Newby, CEO

The expansion is supported by a ten year agreement with a large independent operator that has dedicated 250,000 acres to the system. The system will be in service in the fourth quarter of 2013 or first quarter of 2014.

Read more at summitmidstream.com