Meritage Midstream Acquires Devon Energy’s Midstream Assets in Wyoming
Meritage Midstream Services II, LLC’s subsidiary Thunder Creek Gas Services, L.L.C. has acquired midstream assets located in the southern part of Wyoming’s Powder River Basin from Devon Energy Production Company, L.P., a wholly owned subsidiary of Devon Energy Corp. These assets include approximately 115 miles of natural gas gathering pipeline and associated equipment.
The transaction includes a new long-term dedication from Devon to Thunder Creek of 250,000 acres located in the basin. Thunder Creek now has operations throughout the Powder River Basin in and around most of the prolific resource plays, including the Turner, Teapot, Parkman, Sussex, Niobrara, Frontier and Mowry.
Meritage also announced that two premier producers have awarded gathering and processing contracts to Thunder Creek for the majority of their 2017 Powder River Basin drilling programs. These operators control an estimated 400,000 to 600,000 net acres in the play.
Combined, these transactions increase the number of acres dedicated to Thunder Creek — already the largest midstream provider in the Powder River Basin — to more than 1 million acres, which includes dedications from almost every active operator in the basin. Thunder Creek plans to expand processing capacity at 50 Buttes from 90 MMcf/d to 180 MMcf/d with a targeted in-service date of late 2017 or early 2018. The company also expects to add more than 49,000 horsepower of compression, expand processing capacity by more than 390,000 MMcf/d, add four to six new compressor stations and build 425 miles of gathering and transportation pipeline over the next five years.
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