Joint Venture to Expand Footprint in Colorado's DJ Basin

Black Diamond Gathering has entered into a pair of deals that will expand its oilfield footprint in Colorado's DJ Basin to 243,000 acres. Black Diamond Gathering is a joint venture between Noble Midstream Partners and Greenfield Midstream.

Recently Black Diamond and Noble Energy agreed to ship crude oil on the Saddlehorn Pipeline. The Saddle horn pipeline is a project led by Magellan Midstream Partners that connects shale basins in Powder River Basin Wyoming and DJ Basin in Colorado to storage terminals in Cushing, Oklahoma.

"This opportunity is a natural expansion of Black Diamond's strategic footprint, with the ability to realize economics further down the crude oil value chain while enhancing the all-in value proposition for our customers," Noble Midstream Partners CEO Brent Smolik said in a statement.

Noble Midstream Partners and Greenfield Midstream owns 54.4 percent and 45.6 percent of Black Diamond respectively. The joint venture owns and operates 240 miles of pipeline and has 390 million barrels of crude oil storage capacity.

Black Diamond's deal with Magellan gives the joint venture an option to buy a 20 percent stake in the Saddlehorn Pipeline. The 15-year deal expands Black Diamond's presence by 85,000 acres, giving the joint venture a 243,000-acre footprint in the DJ Basin.


Noble Midstream Forms Joint Venture to Buy Saddle Butte Pipeline for $625 Million

Noble Midstream Partners is forming a new joint venture with Greenfield Midstream to purchase Colorado's Saddle Butte Pipeline for $625 million.

The purchase will help Noble Midstream to expand in Colorado's DJ Basin and capitalize on the region's growing oil production.

Noble Midstream and Greenfield Midstream will split the purchase in half, but Noble will operate the joint venture and own 54.4 percent of it.

The Saddle Butte system includes 160 miles of pipelines in operation with 300,000 barrels per day of crude capacity. It also has about 210,000 barrels of oil storage capacity.

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Plains All American, Noble Midstream Team Up in $133 Million Pipeline Purchase

Plains All American Pipeline and Noble Midstream Partners announced today that they are teaming up to purchase a Permian Basin pipeline system owned by Advantage Pipeline for $133 million.

The 50/50 deal includes acquiring 70 miles of crude oil pipeline located in the southern Delaware Basin. The system also includes about 490,000 barrels of combined crude storage at three trucking stations.

Both Noble and Plains will construct separate pipelines to connect the Advantage Pipeline system to their existing systems in the Permian. Noble Midstream will be the lead operator of the project.

Noble Midstream CEO Terry Gerhart said he is excited about teaming up with Plains All American on the Advantage Pipeline system, noting that the transaction will allow Noble to provide its "sponsor and third party producers connections to multiple market centers and Plains' premier pipeline network."

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