Firm expands crude oil gathering operations
Enable Midstream Partners has expanded its crude oil gathering operations via the acquisition of Velocity Holdings and contractual commitments for substantial expansion of the company’s crude and water gathering systems.
Officials said Velocity Holdings, which is an integrated crude oil and condensate gathering and transportation company in the SCOOP and Merge plays, was acquired for $442 million.
In the Williston Basin, Enable entered into new contractual commitments for broadening of efforts driven by significant producer activity and a backlog of drilled but uncompleted wells from over 90,000 gross acres of dedication.
The Velocity acquisition offers Enable an integrated crude and natural gas midstream platform in the Anadarko Basin, enhancing the firm’s business development prospects, strengthening relationships with key current customers and providing the opportunity for operational synergies.
In accordance with the Williston Basin expansion, Enable officials envision adding up to 72,000 barrels per day (bpd) of crude oil gathering design capacity, increasing total Basin crude gathering capacity to up to approximately 130,000 bpd.
“The Velocity acquisition builds on Enable’s market-leading Anadarko Basin midstream platform that now offers customers complete wellhead-to-market solutions for both natural gas and crude,” Rod Sailor, Enable Midstream president and CEO, said. “The combination of the Velocity acquisition and the expansion of our Williston Basin assets increases the scale and contribution of our crude and water businesses, providing for fee-based growth as producers continue to target crude oil production.”
