Meritage Midstream Services II LLC reported it will acquire 100% ownership of Thunder Creek Gas Services LLC from Devon Energy Corp. and PVR Partners LP. The price for the deal was undisclosed.
Thunder Creek owns and operates natural gas gathering, treating, and processing assets in Wyoming’s Powder River basin, including more than 500 miles of high- and low-pressure gas gathering pipelines, three natural gas treating facilities, compression and gas processing facilities, and various NGL and condensate handling facilities. The transaction closed on Aug. 19.
Meritage said the acquisition enhances its midstream footprint in the country’s emerging shale basins.
The company has an aggressive plan for expansion of the Thunder Creek system, noted Steve Huckaby, Meritage Midstream chairman and chief executive officer.
Meritage also is developing the Black Thunder Terminal, a joint venture with Arch Coal. The terminal, in Campbell County, Wyo., at Arch Coal’s Black Thunder mining complex, will provide storage, blending, and rail loading services for crude oil and condensate produced in the Powder River basin. Meritage expects to expand the Thunder Creek gathering system to provide pipeline service to the terminal.