QEP Midstream Partners, LP today announced last week that it has entered into a purchase and sale agreement to acquire 40% of the outstanding membership interest in Green River Processing, LLC for $230 million in cash from QEP Field Services Company, a wholly owned subsidiary of QEP Resources, Inc..
This transaction represents the QEP Midstream Partners, LP's first acquisition following its initial public offering in August 2013. The transaction is expected to close on or about July 1, 2014, subject to customary closing conditions. QEP will finance the acquisition with borrowings under its revolving credit facility.
At closing, Green River Processing will own the Blacks Fork processing complex and the Emigrant Trail processing plant located in southwest Wyoming. Green River Processing will own four processing plants with total processing capacity of 890 million cubic feet of natural gas per day, natural gas liquids (NGLs) fractionation capacity of 15,000 bbl per day, interconnects to six interstate natural gas pipelines, and direct pipeline access to the Mt. Belvieu and Conway NGL markets.
In 2013, total inlet volumes for Green River Processing were approximately 201 million MMBtu, of which 65% were processed under fee-based processing agreements and 35% were processed under keep-whole processing agreements.
The Blacks Fork complex contains three processing plants with up to 505 million cubic feet of natural gas per day of cryogenic processing capacity and a 330 million cubic feet of natural gas per day Joule-Thomson processing plant. The majority of gas processed at the Blacks Forks complex is produced in the Pinedale Anticline which is approximately 100 miles north of the complex.
The Emigrant Trail processing plant, located approximately ten miles south of the Blacks Fork complex, consists of one cryogenic gas processing train with inlet capacity of approximately 55 MMcf per day. The plant receives the majority of its gas from various gas fields along the Moxa Arch, including Church Buttes, located in the Green River Basin of western Wyoming.
QEP Midstream Partners, LP is a master limited partnership formed by QEP Resources, Inc. to own, operate, acquire and develop midstream assets.