Targa Resources Partners will acquire 100% of Saddle Butte Pipeline, LLC’s ownership of its Williston Basin crude oil pipeline and terminal system and its gas gathering and processing operations for $950 million.
The business to be acquired is located in the heart of the oil-rich Bakken Shale in McKenzie, Dunn, and Mountrail counties, ND and includes 155 miles of crude oil pipelines. The business has combined crude oil operational storage capacity of 70,000 bbl, including the Johnsons Corner Terminal with 20,000 bbl of capacity (expanding to 40,000 bbl) and Alexander Terminal with capacity of 30,000 bbl.
Also included are 95 miles of natural gas gathering pipelines and a 20 MMcf/d gas processing plant with an expansion under way to increase capacity to 40 MMcf/d. The operations are backed by producer dedications under long-term contracts that include 260,000 acres of crude oil production and more than 100,000 acres of natural gas production.