Silver Creek Midstream’s affiliate (Silver Creek) has completed the acquisition of Genesis Energy’s Powder River Basin (Basin) crude gathering, storage, and rail assets (Trunkline System). 

In conjunction with the transaction, Silver Creek has received an equity commitment from the newly formed joint venture between Tailwater Capital and The Energy & Minerals Group (EMG) to close the announced transaction and pursue identified projects to expand the Trunkline System to address the growing demand for crude oil midstream services in the Powder River Basin. 

The new commitment from the Joint Venture provides Silver Creek with $600m of equity to acquire and expand the existing pipeline and storage assets in the Basin.

Pro forma for the acquisition, Silver Creek’s existing Powder River Basin footprint will include:

  • 190+ miles of crude trunkline and gathering pipelines
  • Approximately 190,000+ barrels per day of initial pipeline capacity from the Silver Creek Pronghorn Terminal to the Guernsey Hub, with expansion up to 325,000+ barrels per day
  • Three key existing interconnections to downstream markets out of Guernsey
  • 1+ million barrels of crude storage with an additional 800,000 barrels permitted
  • Rail capability in and out of the Silver Creek Pronghorn Terminal located in Converse County
  • Batching capabilities throughout the entire system that will initially accommodate three specs of crude oil
  • Trucking capability through a transport fleet to meet interim service needs as pipelines are constructed

Silver Creek has independently secured long-term acreage dedications and will commence construction in the fourth quarter to further develop the existing gathering infrastructure by an initial 52 miles of crude pipelines and 100,000+ barrels of additional storage.

For more information visit: www.scmidstream.com

17th October 2018

17th October 2018