US-based Crestwood makes $1.8bn shale grab
US-based Crestwood Energy said October 26 that its pending acquisition of Oasis Midstream will at least double its upstream footprint in the Williston Basin of North Dakota.
Crestwood will acquire Oasis Midstream for approximately $1.8bn, including the assumption of debt.
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Among the transaction highlights, Crestwood said it was obtaining “significant crude oil, produced water gathering and natural gas gathering and processing assets” and adding another 1,200 drilling locations to its inventory, about double its current holdings.
The broader Bakken formation is the second-largest oil producer after the Permian shale in Texas, but the lowest natural gas producer among the seven primary shale reserves in the Lower 48 US states.
Crestwood CEO Robert Phillips said the transaction established his company as a competitive player across the region.
“Importantly, we are completing this transaction during a period when macro oil and gas fundamentals are exceptionally supportive of upstream development and there is increasing demand for midstream infrastructure and services,” he added.
Crestwood said the quality of the assets acquired from Oasis warrants a 5% increase in distribution to shareholders once the transaction is closed, which is expected in the first quarter of 2022.