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Fueling Up for Success: Harvest Midstream, Hilcorp's Affiliate, to Acquire Bakken and Eagle Ford Assets from Paradigm
04/05/2023![Fueling-Up-for-Success-Harvest-Midstream-Hilcorp-s-Affiliate- to-Acquire-Bakken-and-Eagle-Ford-Assets-from-Paradigm](https://images2.rextag.com/public/blog/140Blog_Paradigm_Acquisition_by_Hilcorps_Harvest_Midstream.png)
Harvest Midstream, a Hilcorp affiliate, is set to acquire three midstream gathering systems that serve the Bakken, as well as system located in the Eagle Ford.
Harvest, an affiliate of Hilcorp Energy Corp, has entered into an agreement to purchase three Bakken midstream gathering systems and one in the Eagle Ford from Paradigm. Paradigm is set to sell these midstream assets to Harvest in the near future.
Headquartered in Houston, Paradigm is a privately held company that manages and operates gathering, storage, pipelines, and rail facilities in North Dakota and South Texas. The company's asset portfolio comprises four gathering systems that it fully owns:
- In North Dakota, Paradigm owns the Charlson Gathering System, Van Hook Gathering System, and Mountrail Gathering System. They are focused on the northern McKenzie County and Mountrail County production areas, as well as the Van Hook Peninsula.
- The Bakken assets transport nearly 100,000 barrels per day (bbl/d) of oil and approximately 75 million cubic feet per day (MMcf/d) of natural gas.
- In South Texas, the South Texas Eagle Ford Gathering System assets transport approximately 14,000 bbl/d of oil. The systems consist of approximately 350 miles of trunk lines and gathering lines for oil, gas, and water.
- Paradigm’s Eagle Ford efforts have focused on providing custom gathering, storage, and transport solutions for producers located in La Salle, Zavala, Dimmit, and Frio counties, Texas.
According to Harvest's CEO, Jason C. Rebrook, the Paradigm systems align perfectly with the company's growing network of top-notch midstream assets. This acquisition enables Harvest to expand its reach into the Eagle Ford and the highly productive basins of North Dakota, bolstering its geographic footprint in the process.
Harvest Midstream's acquisition of Paradigm Midstream includes not only the four wholly-owned gathering systems but also Paradigm's ownership interest in two joint ventures with Phillips 66. These joint ventures own all of the Keene and Palermo storage terminals and have a 99% ownership stake in both the Sacagawea crude line and the Blue Buttes gas line.
Rebrook emphasized that Harvest's values of responsible operations are well-aligned with the acquisition of Paradigm. The company is dedicated to delivering outstanding customer service while remaining mindful of its impact on the environment and local communities. He conveyed his enthusiasm for the imminent completion of the sale and the opportunity it offers to maintain high-quality service delivery to customers.
Harvest is a major midstream industry participant, with holdings in excess of 6,000 miles of pipelines distributed across multiple states throughout the United States, such as Alaska, Colorado, Louisiana, New Mexico, Ohio, Pennsylvania, and Texas. In its most recent high-profile deal, Hilcorp Energy, a Harvest affiliate, acquired 49% of BP's Trans-Alaskan Pipeline System (TAPS) in a $5.6 billion agreement. The acquisition of Paradigm by Harvest is projected to be completed in Q2 of 2023, subject to regulatory approvals.
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Multi-Billion Dollar Deal: Ovintiv to Expand Midland Basin Portfolio with EnCap Acquisition and Exit Bakken
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Ovintiv Strikes Billion-Dollar Oil Deal, Doubling Production in Permian Basin with EnCap's Black Swan, PetroLegacy, and Piedra Resources. The deal, which was approved unanimously by Ovintiv's board, is slated to close on June 30. With over $5 billion in transactions announced on April 3, Ovintiv is set to expand its oil production by snatching up 65,000 net acres in the core of the Midland Basin. The deal with EnCap will give them a strategic edge in Martin and Andrews counties, Texas, with approximately 1,050 net, 10,000-ft well locations added to their inventory.
Ranger Oil Acquisition by Baytex: Boosting Shareholder Returns and Introducing Dividend with Improved Free Cash Flow in Eagle Ford Operations
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Baytex Energy, a Canadian oil and gas company, has announced its acquisition of Ranger Oil, an Eagle Ford operator based in Texas, in a deal worth $150 million. The acquisition will accelerate Baytex's shareholder returns and introduce a dividend with enhanced free cash flow.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/297_Blog_Keystone XL Pipeline Controversy and Wildlife Disaster From Trump's Green Light to Biden's Red Light on the 15 Billion Project.jpg)
The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
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Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.