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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
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.
