26-08-2013
ONEOK Partners acquire natural gas gathering and processing and natural gas liquids assets
ONEOK Partners, L.P. today announced that it will invest approximately $440 million in the natural gas liquids-rich area in the Powder River Basin in Wyoming to: * Purchase a 50-million cubic feet per day (MMcf/d) natural gas processing facility – the Sage Creek plant and related natural gas gathering and natural gas liquids (NGL) infrastructure – in western Converse and Campbell Counties, Wyo., for $305 million from an undisclosed seller; and * Invest $135 million to upgrade and construct natural gas gathering and processing related infrastructure, NGL gathering pipelines and well connections.
"The Sage Creek plant gives ONEOK Partners additional natural gas gathering and processing capacity in a region where producers are actively drilling that has significant long-term growth potential," said Terry K. Spencer, president, ONEOK Partners.
"This acquisition will add assets located in and around our operating footprint that can be integrated into our system and used as a platform for future growth opportunities. The acquisition further positions the partnership as a full-service midstream provider for area producers," Spencer concluded.
The partnership expects to close the transaction during the third quarter 2013 and complete the related infrastructure projects in the second half 2014. Financing for this transaction will come from available cash and short-term borrowings.
As part of the acquisition, ONEOK Partners will receive long-term acreage dedications and fee-based and percent-of-proceeds agreements with producers. As natural gas volumes increase to the Sage Creek natural gas processing plant and NGL volumes are transported to the adjacent ONEOK Partners-owned and operated Bakken NGL pipeline over the next several years, total partnership annual EBITDA (earnings before interest, taxes, depreciation and amortization) from this acquisition and the related investments is expected to increase by $40 million to $60 million between 2015 and 2018.
In addition to the Bakken NGL pipeline, ONEOK Partners currently operates approximately 1,000 miles of natural gas gathering pipelines in the Powder River and Wind River Basins in Wyoming. Approximately 10 employees currently operate the Sage Creek system.
Capital Projects:
The partnership has announced total investments of approximately $5.2 billion to $5.6 billion through 2015 for acquisitions and infrastructure growth projects related to natural gas gathering and processing, and natural gas liquids, which includes the acquisitions and projects described above. These investments consist of approximately $2.4 billion to $2.6 billion for natural gas gathering and processing projects, and approximately $2.8 billion to $3.0 billion for natural gas liquids projects. Approximately $2.5 billion to $2.6 billion are for growth projects related to resource development in the Williston Basin. In aggregate, these projects are expected to generate EBITDA multiples of five to seven times.
The incremental earnings from these projects are expected to increase distributable cash flow and value to unitholders in the form of higher distributions. The partnership has a $2 billion to $3 billion backlog of unannounced growth projects that it continues to evaluate. Additional projects included in this backlog will be announced when sufficient supply commitments are completed.
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
Sasol provides state of the art catalysts to INERATEC for the production of sustainable e-fuels
The catalysts will be used, among others, in the first large-scale industrial Power-to-Liquid (PtL) plant that INERATEC is currently building in Frankfurt, Germany, which ...
24-04-2024
-
Baker Hughes to supply 17 centrifugal compressors to Saudi Master Gas System project
Baker Hughes, an energy technology company, announced Tuesday that it has received an order by Worley, for and on behalf of Aramco, to supply gas technology equipment ...
23-04-2024
-
SABIC Fujian Petrochemicals select Phenol yechnology from KBR
KBR announced today it has been awarded a contract by SABIC Fujian Petrochemicals to license KBR's market-leading phenol technology in China. Under the terms of the ...
22-04-2024
-
Lummus Expands R&D capabilities to enhance innovation and water and wastewater technologies
Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced the opening of its cutting-edge research and development (R&D) ...
17-04-2024
-
Clariant launches new CATOFIN® 312 propane dehydrogenation catalyst
Clariant, a sustainability-focused specialty chemical company, today announced the launch of CATOFIN 312, its latest propane dehydrogenation catalyst. The new catalyst ...
16-04-2024
-
Yokogawa and GridBeyond conclude investment and strategic partnership agreements
Yokogawa Electric Corporation and energy IT solutions provider GridBeyond of Ireland announce that they have concluded a strategic partnership agreement. Furthermore, ...
16-04-2024
-
Heraeus Precious Metals launches Circlear
Heraeus Precious Metals, a globally leading company in the precious metals industry and one of the largest recyclers of precious metals, has introduced its new offering ...
16-04-2024
-
EMA and JERA to cooperate on LNG procurement and supply chains
The Energy Market Authority and JERA Co Inc, have signed a Memorandum of Understanding to cooperate on mutually beneficial areas in liquefied natural gas procurement ...
16-04-2024
-
Hexagon and Dragos unveil technical partnership to strengthen industrial cybersecurity
Hexagon’s Asset Lifecycle Intelligence division today announced a strategic partnership with Dragos, a global leader in cybersecurity for operational technology (OT). ...
16-04-2024