Harvest Midstream (Harvest) announced the signing of a purchase and sale agreement with Ares Management funds for Paradigm Midstream, LLC.
“The Paradigm Systems are a perfect fit for Harvest’s expanding network of first-class midstream assets,” said Harvest CEO Jason C. Rebrook. “Not only does this acquisition allow Harvest to further extend its footprint in the Eagle Ford, but with its systems in North Dakota, we will now expand our geographic presence into one of the country’s premier, high-quality basins.”
The North Dakota and South Texas assets are comprised of four wholly owned gathering systems known as the Charlson Gathering System, Van Hook Gathering System, Mountrail Gathering System, and Eagle Ford Gathering System. The Bakken assets transport nearly 100,000 barrels of oil per day and approximately 75 MMcf/d of natural gas. The South Texas Eagle Ford Gathering System assets transport approximately 14,000 barrels of oil per day. These systems consist of approximately 350 miles of trunk lines and gathering lines for oil, gas, and water.
“Paradigm’s commitment to responsible operations is in line with Harvest’s core values. We are dedicated to doing the right thing for our customers, our team, and the communities where we live and work,” Rebrook said. “We look forward to closing this sale and responsibly delivering first class service to our customers.”
The purchase also includes Paradigm’s ownership interest in two joint ventures with Phillips 66. The joint ventures own all of the Keene and Palermo storage terminals and 99% of the Sacagawea crude lines and the Blue Buttes gas line.
Pending regulatory approvals, the sale is expected to close in the Second Quarter of 2023.
