Targa Resources Partners LP plans to buy Saddle Butte Pipeline LLC’s Williston basin crude oil pipeline and terminal system along with its natural gas-gathering and processing operations for $950 million.
The transaction is expected to close during the fourth quarter, subject to customary regulatory approvals.
The assets, which include 155 miles of crude oil pipeline, are in the Bakken formation in the North Dakota counties of McKenzie, Dunn, and Mountrail.
The assets have combined crude oil operational storage capacity of 70,000 bbl, including the Johnsons Corner Terminal with 20,000 bbl of storage capacity (expanding to 40,000 bbl) and Alexander Terminal with storage capacity of 30,000 bbl.
The acquisition includes 95 miles of gas-gathering pipelines and a 20 MMcfd gas processing plant with an expansion under way to increase capacity to 40 MMcfd.
Houston-based Targa expects capital expenditures of more than $250 million will be required in 2013 to support system expansions necessary to meet producer activity.