EnLink Midstream has agreed to acquire Tall Oak Midstream, which owns gathering and processing infrastructure in Oklahoma, for $1.6 billion. EnLink said Tall Oak’s assets in the STACK and Central Northern Oklahoma Woodford (CNOW) plays would complement its existing position in the Cana-Woodford shale and help it create a franchise position in Oklahoma.
Tall Oak owns the 100-million-cubic-feet-per-day Chisholm cryogenic gas processing plant in the STACK play and the 75-million-cubic-feet-per-day Battle Ridge plant that serves the CNOW play. The Chisholm plant will be expanded to 200 million cubic feet per day by the third quarter of 2016, and the Battle Ridge plant is undergoing pipeline and compression expansions. Tall Oak is also building a 42-mile high-pressure header pipeline that will connect the two plants.
The acquisition is part of a larger deal in which EnLink parent company Devon Energy will buy Felix Energy — the largest customer of the Tall Oak system — for $1.9 billion.
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