MDU Resources Subsidiary to Sell Its Share of ND Natural Gas Processing Plant
WBI Energy Midstream, an indirect, wholly owned subsidiary of MDU Resources Group, has agreed to sell 50% of its non-operating ownership interest in the Pronghorn natural gas processing plant near Belfield, ND.
WBI Energy Midstream co-owns the plant and associated natural gas and oil-gathering pipelines with Whiting Oil and Gas Corporation. Tesoro Logistics Rockies agreed to purchase the plant and associated gathering lines for $200 million. The transaction is expected to close in the first quarter of 2017. WBI Energy Midstream acquired its interest in the Pronghorn facilities in May 2012 for $66 million. The company’s share of the sale price would be about $100 million.
“This sale allows us to strengthen our balance sheet and provide cash to invest in other opportunities,” said Martin Fritz, president and CEO of WBI Energy Midstream. “After recently exiting the refining business, this sale further reduces our exposure to commodity prices and reduces overall risk in our portfolio of assets. Also, as a non-operating owner of the plant, the sale is not expected to impact our employees.”
In addition to the plant, associated assets include 137 miles of natural gas-gathering pipeline and 143 miles of oil-gathering pipeline.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- US Poised to Become Net Exporter of Crude Oil in 2023
- EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline
- Enbridge Sells $511 Million Stake in Westcoast Pipeline to Indigenous Alliance
Comments