Rangeland Energy today announced that the company and its financial sponsor EnCap Flatrock Midstream have entered into a definitive agreement to sell Rangeland Energy II, LLC to Tesoro Refining & Marketing Company LLC, a wholly owned subsidiary of Andeavor, for an undisclosed amount. Rangeland II owns and operates the RIO System, a multipart crude oil and frac sand logistics system originating in the heart of the Delaware Basin. The system provides access and optionality to multiple crude oil producers and end markets and consists of the RIO Pipeline System and the RIO Hub.
The all-cash transaction is expected to close early in the first quarter of 2018, subject to customary regulatory approvals. Moving forward, the Rangeland II management team will focus on the expansion of Rangeland Energy III, LLC. Rangeland III is developing the STEPS logistics terminal in Corpus Christi and pursuing midstream opportunities in western Canada.
STEPS is an integrated hydrocarbon logistics system that will receive and store refined products, liquefied petroleum gas and other hydrocarbons at a new terminal hub now under construction in Corpus Christi, Texas, and transport them to terminals primarily located in Mexico..