ONEOK Adds Assets In Powder River Basin

October 2013, Vol. 240 No. 10

ONEOK Partners, L.P. will invest $440 million in the natural gas liquids-rich area in the Powder River Basin in Wyoming to:

? Purchase a 50 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, WY 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 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 said.

The partnership expects to close the transaction soon and complete the related infrastructure projects in mid-2014. ONEOK Partners will receive long-term acreage dedications and fee-based and percent-of-proceeds agreements with producers.
In addition to the Bakken NGL pipeline, ONEOK Partners operates 1,000 miles of gas gathering pipelines in the Powder River and Wind River basins in Wyoming.

The partnership has announced total investments of $5.2-5.6 billion through 2015 for acquisitions and infrastructure growth projects related to gas gathering and processing, and NGLs. These investments consist of $2.4-2.6 billion for gas gathering and processing projects, and $2.8-3 billion for NGL projects; $2.5-2.6 billion are for growth projects related to resource development in the Williston Basin. The partnership has a $2-3 billion backlog of unannounced growth projects that it is evaluating.

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