Silver Creek announces closing of Powder River Basin acquisition from Genesis Energy

Silver Creek Midstream has announced that its affiliate (Silver Creek) has closed the previously announced acquisition of Genesis Energy’s Powder River Basin (Basin) crude gathering, storage, and rail assets (Trunkline System). 

In conjunction with the transaction, Silver Creek has received an equity commitment from the newly formed joint venture between Tailwater Capital and The Energy & Minerals Group (EMG) to close the announced transaction and pursue identified projects to expand the Trunkline System to address the growing demand for crude oil midstream services in the Powder River Basin.

The new commitment from the Joint Venture provides Silver Creek with $600m of equity to acquire and expand the existing pipeline and storage assets in the Basin.

Pro forma for the acquisition, Silver Creek’s existing Powder River Basin footprint will include:

• 190+ miles of crude trunkline and gathering pipelines
• Approximately 190,000+ barrels per day of initial pipeline capacity from the Silver Creek Pronghorn Terminal to the Guernsey Hub, with expansion up to 325,000+ barrels per day
• Three key existing interconnections to downstream markets out of Guernsey
• 1+ million barrels of crude storage with an additional 800,000 barrels permitted
• Rail capability in and out of the Silver Creek Pronghorn Terminal located in Converse County
• Batching capabilities throughout the entire system that will initially accommodate three specs of crude oil
• Trucking capability through a transport fleet to meet interim service needs as pipelines are constructed

Silver Creek has independently secured long-term acreage dedications and will commence construction in the fourth quarter to further develop the existing gathering infrastructure by an initial 52 miles of crude pipelines and 100,000+ barrels of additional storage.

“The existing Genesis Gathering System and Intrastate Pipeline combined with our new growth projects will give Silver Creek the ability to offer a comprehensive crude midstream solution across Converse, Campbell, Johnson and Natrona counties” said Patrick Barley, Founder and Chief Executive Officer of Silver Creek. 

“Upon closing of this transaction, Silver Creek will have over 330,000 acres dedicated to our system long-term, and we anticipate growing these dedications further in the coming months as we expand the system geographically.”

For more information visit: www.scmidstream.com

17th October 2018