Among the highlights in world oil and gas mergers and acquisitions, the most recent report by GlobalData indicates $16 billion changing hands in September alone. The largest of these was Houston-based Energy Transfer’s $5.1 billion acquisition of Tulsa-based SemGroup.
Energy Transfer
Energy Transfer has one of America’s largest energy portfolios with assets reaching coast-to-coast, covering 38 states and an international office in Beijing. Core operations include transportation, storage and terminalling for natural gas, crude oil, NGLs, refined products and liquid natural gas.
SemGroup
SemGroup moves energy across North America through a network of pipelines, processing plants, refinery-connected storage facilities and deep-water marine terminals with import and export capabilities. SemGroup serves as a versatile connection between upstream oil and gas producers and downstream refiners and end users.
A quick study of the merger between Energy Transfer and SemGroup reveals a smart, strategic combination of complementary pipelines, processing plants, storage facilities, and marine terminals, specifically across the Mid-Continent and Gulf Coast. ET gains increased connectivity of its crude oil transportation, terminal, and export capabilities with SemGroup’s 330-acre marine terminal on the Houston Ship Channel, which offers 144 tanks to store 18.25 million Bbls of crude, five ship docks, seven barge docks, and three pipelines. Energy Transfer has announced it will build the 75-mile Ted Collins crude pipeline to connect both companies’ marine terminals.
The deal also expands ET’s crude oil and NGL infrastructure in the DJ and Anadarko basins connecting to the Cushing, Okla., storage hub with access to Gulf Coast markets. SemGroup’s Plattville, Colo., storage hub facility is connected to all major gathering systems in the area and includes a 30-bay truck unloading facility and 350,000 Bbls of crude oil storage. Its 527-mile White Cliffs Pipeline provides service between the DJ and Cushing. The company’s 75-mile Wattenburg Oil Pipeline extends from Briggsdale to Plattville where it connects with White Cliffs. The Wattenburg offers a current capacity of 85,000 BPD with 360,000 Bbls of operational storage.
Energy Transfer’s merger with SemGroup is expected to close by year end or early 2020. We look forward to reading the next chapter.
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