Tallgrass Energy Partners announces acquisition of water infrastructure assets in Bakken

Tallgrass Energy Partners, LP announced Wednesday, through its subsidiary BNN Water Solutions, LLC, the acquisition of water infrastructure assets that expand Tallgrass’ footprint into the Bakken Formation.

BNN acquired Buckhorn SWD Solutions, LLC and Buckhorn Energy Services, LLC, which collectively own 10 saltwater disposal wells and approximately 39 miles of produced water gathering infrastructure. The system currently serves approximately 133,000 dedicated acres for multiple Bakken producers.

Tallgrass acquired the companies for a cash purchase price of approximately $95 million and expects that BNN will invest additional approximately $45 million in 2018 to expand the system to accommodate increased dedicated water volumes from expected new drilling and completions.

Once the expansion is completed, Tallgrass anticipates the total investment will approximate a five times cash flow multiple.

“The acquisition of this Bakken water infrastructure expands BNN’s footprint into another premier oil and gas producing region of the country while establishing and expanding important customer relationships for BNN and Tallgrass,” BNN Vice President and General Manager Jeff Nelson said. “In addition, this acquisition provides Tallgrass with an opportunity to grow its midstream service offerings in the Bakken.”