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Denver, CO, December 3, 2018 – ARB Midstream, LLC (“ARB”) today announced it has partnered with Vitol US Holding Co. (“Vitol”) to acquire Red River, a fully integrated midstream company, for an undisclosed sum. The pipeline system has been renamed the Texoma Crude Oil Pipeline System (“Texoma”).
The Texoma pipeline system consists of approximately 700 miles of active crude oil pipelines, over 950,000 barrels of working storage, and 25 truck injection stations servicing North Texas and Southern Oklahoma. The system’s central location enables it to serve customers across the region, including the core of the SCOOP play and portions of the STACK and Barnett shale regions. The Texoma system serves over 400 operators, ranging from large cap multi-nationals to local private operators. The system has extensive market optionality with access to multiple takeaway alternatives including the Gulf Coast, Cushing, and direct connectivity to local refinery markets.
With this acquisition, ARB, currently the largest, privately held crude oil midstream gatherer in the DJ Basin, gains exposure to the SCOOP/STACK region, one of fastest developing producing regions in the U.S. “This acquisition enhances ARB’s position within the U.S. inland corridor and provides the company with exposure to multiple growing shale regions.” stated Adam Bedard, Chief Executive Officer at ARB Midstream. “We are very excited about our partnership with Vitol, one of the most prominent crude oil marketing and trading companies in the world.”
“There are numerous opportunities to expand the capabilities and connectivity of the Texoma system, since it is connected to three of the most dynamic markets in the US – Midland, Cushing, and the Gulf Coast – providing producers and refiners access to multiple markets at any time,” said Pat McMurry, SVP Gathering and Transportation for ARB Midstream. Mr. McMurry was responsible for managing the Red River system for its previous owner and, along with the Vitol team, has a long history and understanding of the asset and the regional producer dynamics.
Joe Simon, a Vice President of Vitol’s crude oil business, echoed ARB’s excitement. “This investment demonstrates Vitol’s long-term commitment to the region. Texoma currently gathers about 25% of the regional production and is a critical piece of infrastructure serving the Southern Oklahoma and North Texas crude oil markets. Vitol is excited to work with ARB to continue developing these assets.”
About ARB Midstream, LLC
ARB Midstream, LLC is a privately held company, based in Denver, CO, that provides comprehensive midstream and marketing solutions for crude oil, LPGs and refined products. ARB operates in Colorado, Oklahoma, Texas, Wyoming, and North Dakota.
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
Vitol is an energy and commodities company; its primary business is the trading and distribution of energy products globally – it trades over seven million barrels per day of crude oil and products and, at any time, has 250 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including; almost 18mm3 of storage across seven continents, 480kbpd of refining capacity and circa 5,000 service stations across Africa, Australia, Asia, and in Northwest Europe. Revenues in 2017 were $181 billion. For more information: www.vitol.com