Eagle Rock Acquires BP’s Texas Panhandle Midstream System

November 2012, Vol. 239 No. 11

Eagle Rock Energy Partners, L.P. has closed on the acquisition of BP America Production Company’s Sunray and Hemphill processing plants and associated 2,500 mile gathering system serving the liquids-rich Texas Panhandle for $227.5 million.

Eagle Rock and BP entered into a 20-year, fixed-fee Gas Gathering and Processing Agreement under which Eagle Rock will gather and process BP’s natural gas production from the existing connected wells.

Eagle Rock will integrate the BP Panhandle System with its existing system in the area, resulting in 6,463 miles of combined gathering pipelines serving more than 5,000 wells and more than 480 MMcf/d of combined processing capacity with an additional 60 MMcf/d of capacity expected to come online in early0 2013 following completion of Eagle Rock’s Wheeler Plant.