Outrigger Energy knows when and where to pounce when it comes to greenfield midstream infrastructure in basins that sorely need it. Six years ago, this Denver-based operator swooped into the Permian where it constructed gathering pipe and gas plants in two of the basin’s richest growth areas. The company’s Delaware system included more than 140 miles of natural gas gathering pipeline, a processing facility with 70 MMCFD of capacity, and a crude gathering system with 40,000 BPD of capacity. The Outrigger Midland consisted of 100 miles of gas gathering pipeline, 10 MMCFD of processing capacity, and a crude gathering system with 40,000 BPD of capacity. Both were sold in 2017 to Houston-based Targa Resources for a dandy $1.5 billion.
Outrigger Energy II LLC is a private, full service midstream energy company specializing in greenfield project development with current systems operating and under construction in the DJ and Williston Basins. The company was formed in 2017 after Outrigger Energy LLC sold its assets to Targa Resources and Tallgrass Energy Partners.
Within a year of initial construction of Outrigger’s Permian assets, the company leaped on a new opportunity in the Powder River Basin where it built a complete wellhead-to-market crude oil gathering system that included pipelines, pumps, measurements and other facilities for a capacity of up to 60,000 BPD. That system also was sold in 2017 to Kansas-based Tallgrass Energy.
Then in 2018, Outrigger began development of a tri-stream midstream system in the DJ Basin to handle natural gas, crude oil, and produced water. The 60 MMCFD cryogenic processing plant, gas gathering pipe, and crude oil and produced water gathering system began service after only eight months from the start of construction. The DJ project, certainly closer to Outrigger’s Colo., home, became the company’s first telltale that it planned to narrow its geographic focus to the Rocky Mountain region.
Now, after inking a long-term gas gathering and processing agreement with Exxon Mobil’s XTO, Outrigger is headed to the Bakken where it’s building a 70-mile natural gas pipeline and initial 250 MMCFD cryogenic plant. The processing facility will offer ethane recovery and rejection capabilities with direct access to the Northern Border Pipeline for residue gas and ONEOK’s NGL pipeline.
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