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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The Money Backers: Cresta Fund Management

The Money Backers: Cresta Fund Management

In RMR’s continuing series The Money Backers, we give readers a glimpse of who’s who and who owns what in energy’s private equity world.  From the largest to the smallest to the newest, we look especially at those firms making hay in the midstream industry to provide the capital infusion required to give growth projects liftoff.

Cresta Fund Management

Cresta Fund Management is a middle-market focused private equity firm with a conservative, value-added approach to infrastructure investing. It seeks to invest in hard asset transportation, storage, and processing businesses primarily in the energy, chemicals and water sectors.

www.crestafunds.com

Dallas-based Cresta Fund Management likes good infrastructure ideas, whether they’re hatched from startups or companies that have been around awhile. This private-equity firm exclusively targets mid-market midstream investments with assets that include oil and gas pipelines, processing, and storage. And, at least for now, Cresta has found those investments squarely in Texas with typical check sizes that range between $50 and $250 million. Founded in 2016, the firm currently holds six midstreamers in its portfolio—one of which made headlines today with a new growth announcement.

  • Houston-based Easton Energy says it will expand its NGLs and olefins storage at the underground salt dome caverns in Markham, Texas. The company holds exclusive rights to develop and lease certain caverns that will support a slate of fractionators and petrochemical plants coming online this year and beyond. Easton also looks to add crude storage at the site, where it has rights to 13 caverns and 50 MMBbls of storage. Easton in March 2019 acquired 415 miles of La., and Texas Gulf Coast NGLs pipelines from Williams for $177 million in cash.
  • Sentinel Midstream, through subsidiary Texas GulfLink, is developing a crude oil deepwater export terminal 32 miles off the Gulf Coast at Freeport with the capability to load VLCCs at a rate of 1.2 MMBPD. The Texas GulfLink project will include an onshore oil storage terminal connected by a 42” pipeline to a manned offshore platform. Sentinel is headquartered in Dallas.
  • Dallas-based Ocelot Energy Management offers end-to-end management services for liquid and natural gas pipelines, processing plants, terminals, and storage facilities. Turnkey services include operations and maintenance; engineering, permitting, construction management and technical support; and financing and accounting.
  • Blackbuck Resources designs and builds produced-liquids infrastructure between well sites and processing facilities. Based in Houston, Blackbuck operates across Texas, N.M., and Okla., offering gathering, disposal and treatment solutions, as well as pond management.
  • From The Woodlands, Texas, NAmerico Energy has numerous projects on its whiteboard. Although construction has been delayed until 2021, NAmerico’s first venture will be the 445.5-mile natural gas Pecos Trail Pipeline that will provide a direct link between the Permian and Gulf Coast demand centers. NAmerico also plans to build two laterals that will include the 40-mile Midland, which will extend from Sprayberry to Sheffield, Texas, and the 55-mile Orla in the Delaware that would connect to the Pecos Trail Pipeline at the Waha hub.
  • Dallas-based startup Cornerstone Midstream has partnered with a private producer in Andrews County, Texas, to build out a midstream system in the Midland sub-basin that will include natural gas gathering and processing as well as crude oil and water gathering.

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