A week after Oklahoma City-based Devon Energy announced plans for a $1 billion divestiture of some of its holdings so it could devote more exploration in Oklahoma’s STACK and the Permian Basin in Texas, its sale of 115 miles of natural gas gathering pipeline in Wyoming has been announced.
Meritage Midstream Services LLC and its subsidiary Thunder Creek Gas Services LLC acquired the assets located in the southern part of Wyoming’s Powder River Basin.
No sales price was revealed but the sale also included some equipment and made up all of Devon’s midstream assets across the Basin.
The announcement stated that the transaction includes a new long-term dedication from Devon to Thunder Creek of 250,000 acres in the basin. It also means Thunder Creek has operations throughout the Power River Basin including in and around some of the most prolific resource plays such as the Turner, Teapot, Parkman, Sussex, Niobrara, Frontier and Mowry.
Thunder Creek is already the largest midstream provider in the Powder River Basin with holdings of more than 1 million acres.
“We have been working with Devon since we entered the Powder river Basin in 2013 and have developed a very strong relationship with both Devon and most of the active producers in the basin,” said Meritage COE Steve Huckaby. “Economics in the basin are strong, and we are seeing activity ramp up as producers recognize the long-term value of the basin’s formations.”
Meritage already had more than 1,000 miles of high and low-pressure pipeline in the Basin including the Thunder Creek NGL pipeline which connects facilities to the Phillips 66 Powder River pipeline to deliver natural gas liquids to Conway, Kansas.