WBI Energy Midstream, an indirect, wholly owned subsidiary of MDU Resources Group, has agreed to sell 50% of its non-operating ownership interest in the Pronghorn natural gas processing plant near Belfield, ND.
WBI Energy Midstream co-owns the plant and associated natural gas and oil-gathering pipelines with Whiting Oil and Gas Corporation. Tesoro Logistics Rockies agreed to purchase the plant and associated gathering lines for $200 million. The transaction is expected to close in the first quarter of 2017. WBI Energy Midstream acquired its interest in the Pronghorn facilities in May 2012 for $66 million. The company’s share of the sale price would be about $100 million.
“This sale allows us to strengthen our balance sheet and provide cash to invest in other opportunities,” said Martin Fritz, president and CEO of WBI Energy Midstream. “After recently exiting the refining business, this sale further reduces our exposure to commodity prices and reduces overall risk in our portfolio of assets. Also, as a non-operating owner of the plant, the sale is not expected to impact our employees.”
In addition to the plant, associated assets include 137 miles of natural gas-gathering pipeline and 143 miles of oil-gathering pipeline.