In what could be part of a trend identified by Cowen & Co., White Star Petroleum LLC said Aug. 15 that it has sold its interest in a midstream gathering system and associated assets to Oklahoma City-based 4 AM Midstream LLC, a midstream company founded this year.
The Mid-Continent region assets are in the Oklahoma counties of Logan, Noble and Payne and include 253 miles of gas gathering pipelines—including 26 miles of high pressure lines—and 214 miles of crude oil gathering pipelines. In connection with the transaction, White Star and 4 AM signed 20-year crude and gas gathering agreements covering a defined dedication area.
“The divestiture of these non-core assets strengthened White Star’s balance sheet, which provides the company with additional flexibility to invest capital in its core upstream operations and continue to create value for its investors,” Elliot J. Chambers, White Star’s CEO, said in a statement.
White Star is majority owned and controlled by an affiliate of The Energy & Minerals Group. Porter Hedges LLP acted as legal adviser to White Star.
Recommended Reading
Patterson-UTI Braces for Activity ‘Pause’ After E&P Consolidations
2024-02-19 - Patterson-UTI saw net income rebound from 2022 and CEO Andy Hendricks says the company is well positioned following a wave of E&P consolidations that may slow activity.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.