Noble Midstream Partners LP and Greenfield Midstream, LLC have formed a joint venture, Black Diamond Gathering, LLC, that has entered into definitive agreements to acquire Saddle Butte Rockies Midstream, LLC and affiliates for $625 million.
Under the terms of the transaction, Noble Midstream will own 54.4% of the joint venture and Greenfield Midstream will own 45.6%.
Saddle Butte’s assets include a large-scale integrated crude oil gathering system in the DJ Basin, which consists of approximately 160 miles of pipeline in operation, 300,000 barrels per day of delivery capacity, and approximately 210,000 barrels of crude oil storage capacity.
Upon closing, which is expected in the first quarter of 2018, Noble Midstream will operate and control the Saddle Butte system. The transaction’s approval is subject to customary closing conditions, including the receipt of regulatory approvals.