ARB Midstream Acquires Platte River Gathering System from Rimrock Midstream Holdings
Denver, CO, (September 8, 2016) - ARB Midstream, LLC (“ARB”), an energy midstream, logistics and marketing company based in Denver, Colorado, has acquired a controlling interest in the Platte River Gathering System (“PRG”) from Rimrock Midstream Holdings, LLC (“Rimrock”).
The PRG system provides gathering for crude oil production in the heart of the prolific Denver-Julesburg Basin, which is home to the Niobrara and Wattenberg plays in Weld County, Colorado. The system is backed by multiple long-term producer commitments, and started transporting crude oil in April 2016. PRG is capable of moving up to 157,000 b/d and includes over 40 miles of crude oil gathering lines, truck unloading at the Lucerne Hub, and planned storage capacity of up to 600,000 barrels. PRG delivers to the Grand Mesa Pipeline, which delivers barrels to Cushing, Oklahoma.
“We are pleased to announce the acquisition of PRG,” said Adam Bedard, CEO of ARB Midstream. “The system is a strategic fit with our existing footprint of midstream infrastructure and marketing capabilities in one of the fastest-growing crude oil plays in North America. As the DJ Basin has grown, infrastructure has struggled to keep up. The PRG System allows Weld County producers to move barrels to market efficiently and economically, while replacing the need for trucks in the regional communities.”
“ARB is also pleased to announce the appointment of Pat McMurry as the Senior Vice President of Gathering and Transportation. Mr. McMurry joined the ARB management team after overseeing the development of PRG for Rimrock. Mr. McMurry has over 40 years of experience in midstream construction and business development, including multiple pipeline and terminal projects at Enterprise, TEPPCO and ExxonMobil.”
ARB provides complete midstream and marketing solutions for crude oil, LPGs and refined products, by acquiring, developing and operating high-quality assets in plays with sustainable growth and low-cost production economics. In combination with ARB’s existing crude marketing and logistics business in the Denver-Julesburg and the greater Rocky Mountain market, the PRG transaction will support ARB’s goal of offering a fully-integrated midstream and marketing solution to producers in the Denver-Julesburg basin.
Davis, Graham & Stubbs LLP acted as legal advisors for ARB Midstream. Stephens, Inc. acted as lead financial advisor for Rimrock Midstream Holdings; Baker & McKenzie LLP acted as legal advisors.
About ARB Midstream, LLC
ARB Midstream, LLC is a privately held company, based in Denver, CO, that provides complete midstream and marketing solutions for crude oil, LPGs and refined products. ARB markets crude oil and operates assets in Colorado, Texas, Wyoming, North Dakota, and Calgary, AB.
ARB was formed with a strategic financing relationship with BV Natural Resources, LLC, the energy division of Ball Ventures, LLC. Ball Ventures, LLC is a private company headquartered in Idaho Falls, Idaho, founded by Allen Ball, an Idaho businessman and entrepreneur that has helped build several successful companies, some of which operate in markets around the world. Under the leadership of CEO Cortney Liddiard, Ball Ventures, LLC has expanded its portfolio of real estate and private equity investments, in addition to the energy division of the company.
For more information about ARB Midstream, visit www.arbmidstream.com.