Outrigger Energy Sells Nearly 200 Miles of Natural Gas, Crude Pipeline to Summit Midstream

(P&GJ) — Outrigger Energy II LLC has completed the sale of its midstream system in Weld County, Colorado to Summit Midstream Partners LP, the company said on Dec. 1.

Outrigger’s Denver-Julesburg (DJ) Basin system includes a 60 MMcf/d cryogenic natural gas processing plant with product deliveries to the Cheyenne Plains gas pipeline and DCP’s natural gas liquids system, approximately 70 miles of low-pressure natural gas gathering pipelines, approximately 90 miles of high-pressure natural gas gathering pipelines, 12,800 horsepower of field and plant compression and approximately 30 miles of crude oil gathering pipelines with delivery to the Pony Express Pipeline.

Outrigger’s DJ system is anchored by long-term, fee-based contracts and approximately 310,000 dedicated acres from leading basin operators.

“The robust midstream system we developed in the DJ Basin proved attractive to potential purchasers and this transaction with Summit delivers a positive outcome for our customers, employees, and investors,” Dave Keanini, Outrigger’s president and CEO, said. “Further, the system’s extensive high-pressure gas gathering footprint provides an excellent platform for interconnectivity with multiple midstream systems in the DJ Basin, including Summit’s system.”

With the sale of its DJ Basin system, Outrigger will be exclusively focused on the continued development of its world class Williston Basin system located in Williams and Mountrail Counties, North Dakota. The system is ideally located to service growing volumes and has exposure to several thousand drilling locations across its footprint.

Outrigger’s 250 MMcf/d Bill Sanderson cryogenic gas processing plant located west of Williston, ND commenced permanent operation in June and is maintaining near 100% runtime. The high efficiency plant features ethane recovery and rejection capabilities with direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for natural gas liquids. Outrigger’s plant facilities are easily expandable with additional processing capacity of up to 200 MMcf/d for a total capacity of 450 MMcf/d.

In early 2022, Outrigger extended its 24- and 20-inch diameter, high pressure, rich gas pipeline from Williams County further east into Mountrail County to connect additional customers. The pipeline now extends over one hundred miles, has a capacity of approximately 450 MMcf/d and serves multiple customers at various receipt points.

“We are seeing our core customers increase gas deliveries to our system as we enter 2023 and expect volumes to steadily grow throughout the year,” Keanini said. “Our asset is exceptionally positioned to provide reliable service to upstream as well as other midstream operators in the basin and we’ve begun scoping the next processing expansion at the Sanderson plant. As producers continue to increase their gas volumes through the drill bit and as gas-to-oil ratios increase, our system will provide Williston Basin operators dependable infrastructure to capture their gas and move their products.”

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