Funds managed by Ares EIF, Ares Management’s power and infrastructure strategy, have closed on the acquisition of substantially all of the assets and business interests of Paradigm Energy Partners from an affiliate of Stonepeak Infrastructure Partners.
The Paradigm assets will be combined with Ares EIF’s adjacent Van Hook Gathering System, which it acquired in 2015, to form a premier regional midstream platform serving the core of the Williston Basin in North Dakota, with additional reach into the prolific Eagle Ford Shale in South Texas. The combined entity, which will continue to be known as Paradigm, will continue to be operated by Paradigm’s existing management team and employee base.
The acquisition consists of two oil and natural gas gathering systems in North Dakota and a third in South Texas, along with joint venture interests in the Sacagawea Pipeline Company and various logistics assets in North Dakota. By year end 2018, the combined company is expected to transport nearly 50,000 barrels of oil and 23 million cubic ft of gas per day from 11 contracted customers in North Dakota and Texas.
“We believe that this transaction with Paradigm aligns with our investment strategy as it expands our reach in the core of the Williston Basin and continues Ares EIF’s 30-year track record of investing in high-quality companies and assets in the U.S. energy infrastructure space,” says Keith Derman, Partner with Ares EIF.
“The Paradigm management team has done a tremendous job over the past four years developing and building a basin-changing midstream platform,” says Scott Parkes, Principal with Ares EIF. “We are delighted to have this opportunity to support this team as they transition from initial build-out to long-term growth.”