A fund managed by its Ares EIF Group has completed its acquisition of the Van Hook Gathering System in North Dakota from WPX Energy (NYSE: WPX) in a transaction valued at USD185 million. The transaction was originally announced on 31 August, 2015.
The acquisition consists of pipeline systems that currently gather approximately 11,000 barrels of oil, 6,500 million cubic feet of natural gas, and 5,000 barrels of water per day from WPX Energy’s Bakken shale oil assets. WPX Energy will continue to operate the Van Hook Gathering System, and MCP Operating, LLC, a subsidiary of MCP Asset Development Group, will provide asset management services for the investment.
“With long-term contracts and excellent partners in WPX Energy and MCP Operating, the Van Hook Gathering System is the type of midstream investment Ares EIF targets,” says Jose Torres-Monllor, Partner of the Ares EIF Group. “We are excited to add this project to our portfolio of high-quality energy infrastructure assets.”
