Black Bear Makes Another Meaty Acquisition

Black Bear Makes Another Meaty Acquisition

Since its creation last December as a portfolio company of private equity firm Basalt, Houston-based Black Bear Transmission has had its eyes on the prize of acquiring natural gas midstream assets that serve utilities and end-users across the Southeast. And it’s just made another one that fits like an absolute glove.

Black Bear Transmission

Black Bear Transmission LLC transports and delivers natural gas from various pipeline receipt points to power generation, industrial and utility customers in the Southeast U.S. The company includes eight regulated natural gas pipelines stretching more than 1,200 with total delivery capacity of more than 1.8 Bcf/d. The pipelines are connected to 12 major long-haul pipelines, ensuring reliable gas supply to customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee.

www.basaltinfra.com

 

But a little history first to understand how quickly Black Bear has sought out prime assets in its targeted region.

The company in December completed its acquisition of Third Coast Midstream’s natural gas transmission business, which included seven pipelines stretching 550 miles with connections to eight major long-haul gas pipelines across La., Ala., Miss., Tenn., and Ark. In April, Black Bear snatched up Ozark Gas Transmission and Ozark Gas Gathering from Enbridge. This acquisition added a 367-mile interstate gas pipeline system that runs from southeastern Okla., through Ark., to southeastern Mo., and more than 330-miles of gathering pipe connecting regional production into the Ozark pipeline.

Black Bear’s midstream assets grew to a total of eight natural gas pipelines extending more than 1,200 miles with delivery capacity of more than 1.8 BCFD, and connections to 12 long-haul pipelines. And this bear wasn’t done yet.

As Third Coast Midstream renewed its focus on core operations along the Gulf Coast, including the company’s offshore infrastructure platform, Black Bear saw another opportunity to contiguously expand its Southeast footprint and grow its pipeline system.

Black Bear Transmission now has announced a second bolt-on acquisition from Third Coast Midstream. The company’s latest deal includes the purchase of six intrastate natural gas pipelines that span 1,400 miles in Ala., La., and Miss., with a total capacity of more than 800 MMCFD. The transaction is expected to close in 2Q 2020.

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National Fuel Grows Its Energy Empire

National Fuel Grows Its Energy Empire

N.Y.-based National Fuel Resources has once again diversified its midstream capabilities with the acquisition of a crude oil terminal in Gibson, La., by the company’s Empire Pipeline subsidiary. Previously owned and operated by Equilon (Shell Oil Products and Shell Oil Co.), the new assets mark Empire’s first entry into crude oil terminalling—an area it plans to grow through future acquisitions.

National Fuel Reources

National Fuel Resources, Inc. (NFR) is among the largest non-utility suppliers of natural gas in this region. For more than 25 years, NFR has been helping businesses in New York and Pennsylvania with their natural gas costs.

www.nfrinc.com

Located in Terrebonne Parish near the Intracoastal Waterway, the Gibson Terminal offers 300,000 barrels of tank storage along with barge loading and unloading and a truck receiving station. The facility handles sweet and sour crude from the Eagle Ford, Permian, and Bakken via the Ship Shoal Pipeline System, the Atchafalaya Pipeline, and the Magellan Pipeline. Empire says it also plans to build a bi-directional pipeline connection to Shell’s 350-mile Zydeco pipeline.

National Fuel in May acquired Shell’s upstream and midstream gathering assets in Pa., for $541 million. The transaction included 200,000 acres in Tioga County, with net proved developed gas reserves of approximately 710 BCF, 142 miles of gathering pipe, and more than 100 miles of water pipelines—all of which support the production operations.

National Fuel’s business segments include a natural gas utility, exploration and production, natural gas transportation pipelines and storage, and natural gas gathering.

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Tallgrass Revs Up Its Cheyenne Connector

Tallgrass Revs Up Its Cheyenne Connector

Kansas-based Tallgrass Energy has announced that both its Cheyenne Connector pipeline and Rockies Express Pipeline (REX) Cheyenne Hub Enhancement Project have now begun commercial service. Tallgrass and DCP Midstream each hold a 50% interest in the 70-mile Cheyenne Connector, which flows natural gas supplies from processing facilities in the DJ Basin in southern Weld County, Colo., to the REX Cheyenne Hub south of the Wyo., border. There, the REX Pipeline connects and intersects with numerous other pipelines—including several that Tallgrass has modified for bi-directional flow—and provides DJ gas first firm access to West, Midwest, Southeast and Gulf Coast markets. DCP is one of the largest oil and gas operators in the DJ.

Tallgrass Energy

Tallgrass Energy, LP is a growth-oriented midstream energy company, transporting crude oil and natural gas from some of the nation’s most prolific basins in the Rocky Mountains, Upper Midwest and Appalachian regions with access to major demand markets in the Rockies, the Midwest, eastern Ohio and points beyond.

www.tallgrassenergy.com

The Cheyenne Connector is fully subscribed at 600 MMCFD. The REX Hub offers 800 MMCFD of capacity with 200 MMCFD expected to be placed into service during 4Q this year. The REX Pipeline, co-owned by Tallgrass and Phillips 66, is among the largest natural gas pipelines in the nation, extending 1,700 miles from northwestern Colo., and Wyo., to eastern Ohio.

Tallgrass Energy owns and operates more than 8,300 miles of natural gas pipelines, 850+ miles of crude pipe, and 300+ miles of water pipeline across the Rockies, Upper Midwest, and Appalachia. Additional projects include the proposed 700-mile Seahorse Pipeline that will transport 800,000 BPD of crude from the Cushing, Okla., hub to the La., Gulf Coast. The 80-mile Iron Horse Pipeline will move crude from the Powder River Basin to the Guernsey, Wyo., oil hub.

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