LEAWOOD, Kan.–(BUSINESS WIRE)–Tallgrass Partners, a key player in North American midstream energy, has announced a significant acquisition that broadens its operational footprint in the prolific Bakken oil and gas region. Through its subsidiary, BNN Water Solutions, LLC (“BNN”), Tallgrass Partners has acquired water infrastructure assets from Buckhorn SWD Solutions, LLC and Buckhorn Energy Services, LLC (“Buckhorn”). This strategic move not only establishes Tallgrass Partners firmly in the Bakken but also creates a robust platform for future growth and expanded service offerings in this crucial energy basin.
This acquisition, finalized for a cash purchase price of approximately $95 million, includes 10 salt water disposal wells and around 39 miles of produced water gathering infrastructure. These assets are strategically located to service approximately 133,000 dedicated acres for multiple Bakken producers, notably including XTO Energy, Inc. Tallgrass Partners anticipates further investment of approximately $45 million in 2018 to enhance and expand the system. This expansion is designed to accommodate increasing dedicated water volumes driven by anticipated new drilling and completion activities in the region. Upon completion of these infrastructure enhancements, Tallgrass Partners projects a total investment that will approximate a highly attractive five times cash flow multiple.
With the integration of Buckhorn’s assets, BNN Water Solutions now commands an extensive network of over 230 miles of water supply and gathering pipelines. Coupled with its existing portfolio of water supply, storage, recycle, and disposal assets, this acquisition solidifies BNN’s position as a leading independent operator of comprehensive water infrastructure solutions within the energy sector. This expanded capability underscores the commitment of Tallgrass Partners to providing essential services that support efficient and sustainable energy production.
“The acquisition of this Bakken water infrastructure is a pivotal step for BNN, extending our reach into a premier oil and gas producing region and simultaneously strengthening our relationships with key customers,” commented Jeff Nelson, Vice President and General Manager of BNN Water Solutions. “Furthermore, this strategic investment provides Tallgrass Partners with a valuable opportunity to significantly grow its midstream service offerings within the Bakken, enhancing our overall value proposition in the market.”
About Tallgrass Partners
Tallgrass Partners stands as a prominent family of energy companies, encompassing publicly traded partnerships Tallgrass Energy Partners, LP (NYSE: TEP) and Tallgrass Energy GP, LP (NYSE: TEGP), alongside privately held Tallgrass Development, LP. Operating across 11 states, Tallgrass Partners is dedicated to growth as a midstream energy operator. Its diverse asset base includes transportation, storage, terminal, water, gathering, and processing facilities, serving some of the most productive crude oil and natural gas basins across the United States. Tallgrass Partners is committed to delivering reliable and efficient energy solutions that meet the evolving needs of the industry.
For more detailed information, please visit the Tallgrass Partners website at www.tallgrassenergy.com.
Forward-Looking Statements
It is important to note that this press release includes forward-looking statements. These statements relate to future expectations, beliefs, and anticipated events or developments that management believes are possible or likely to occur. Such forward-looking statements are, by their nature, subject to risks, assumptions, and uncertainties that are often beyond the control of Tallgrass Partners. These risks and uncertainties can cause actual results to differ materially from those projected or implied in these statements. Specifically, these statements include expectations regarding the timing and budget of additional capital expenditures for BNN’s Bakken expansion, the anticipated increase in water volumes from new drilling and completions, and the projected five times cash flow multiple from the transaction and related capital expenditures. Factors that could cause actual results to vary materially from these projections are detailed in reports filed by TEP with the Securities and Exchange Commission. These forward-looking statements are applicable only as of the date of this release, and Tallgrass Partners undertakes no obligation to update or revise any forward-looking statement, whether due to new information, future events, or other factors, except as mandated by law.
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Contact Information
Tallgrass Partners
Investor and Financial Inquiries
Nate Lien, 913-928-6012
investor.relations@tallgrassenergylp.com
Media and Trade Inquiries
Phyllis Hammond, 303-763-3568
phyllis.hammond@tallgrassenergylp.com
Source: Tallgrass Energy Partners, LP
