Asset Risk Management (ARM) (www.asset-risk.com) announced today that ARM Midstream, a wholly owned subsidiary of ARM, is partnering with Highbridge Principal Strategies, LLC (Highbridge) to build a cryogenic processing plant, natural gas gathering system, and crude oil gathering system in Oklahoma’s STACK play. The project will provide area producers with the infrastructure and takeaway capacity required to grow production in a highly competitive environment. The initial capital investment for the Kingfisher Midstream Project is estimated at approximately $200 million.
Plans for the Kingfisher Midstream system include more than 100 miles of low- and high-pressure gas gathering pipelines, more than 15,000 horsepower of compression, and a newly constructed cryogenic processing facility with initial processing capacity of 60 million cubic feet of gas per day. The system design is configured strategically to serve STACK producers in Kingfisher County, as well asBlaine, Logan, Garfield, and Canadian Counties via additional plant expansions, a high-pressure gathering backbone, and centralized low pressure delivery points.
The Kingfisher Midstream Project will also include a crude oil gathering system that will provide producers with streamlined operations and superior pricing optionality. The crude gathering system will connect in-field production to Cushing, Oklahoma and will also include truck loading facilities and storage for 50,000 barrels of crude oil.
The newly constructed facilities will provide area producers with a much needed midstream infrastructure alternative and will connect the basin to the premier takeaway markets in the area. Additionally, producers will benefit from the deep marketing knowledge of the ARM team across natural gas, NGL and crude takeaway. ARM currently serves more than 100 producer clients across all basins inNorth America and has a full team of physical marketers across all hydrocarbon products. The project is anchored by a long-term commitment of approximately 100,000 gross acres dedicated to the Kingfisher Midstream System.
“We’re excited to partner with Highbridge to provide a long-term infrastructure and capacity solution for STACK-area producers through this project,” said Zach Lee, ARM’s chief executive officer. “At ARM, marketing expertise informs every step of our project strategy – it is in our company’s DNA. We excel at connecting the dots between midstream and downstream, offering producers a strategic approach that no other company can provide.”
Taylor Tipton, president of ARM Midstream and ARM Energy Management added, “Our company’s deep knowledge of the physical markets informed our midstream development and will provide significant value for producers in the region. As the STACK develops, the takeaway capacity provided by the Kingfisher Midstream Project will give producers an edge in a highly competitive physical market.”
The Kingfisher Midstream Project is expected to commence gathering operations in Q4 2015 and the processing plant will be in service by Q1 2016. Planning for future system expansion is underway and updates will be shared as the project progresses.
ARM has corporate headquarters in Houston and offices in Pittsburgh, Denver, and Calgary. ARM expects to open offices inOklahoma City and Midland, Texas by the end of 2015.
About Asset Risk Management
ARM is an independent producer services company that provides solutions through financial hedging advisory, physical marketing, and midstream solutions. ARM delivers value to its clients by identifying and capturing potential market upside and de-risking producers’ natural commodity long position across all of its service lines. ARM Energy Management (“AEM”) markets crude oil/condensate, natural gas, and natural gas liquids for producers in all major producing basins throughout the United States. ARM leverages the industry knowledge and experience of its staff to offer a wide variety of reliable and competitively priced energy marketing and management services to its clients delivering tangible value. The company and its predecessors have operated multiple midstream assets in Pennsylvania, Texas and Louisiana since 2009. For more information, please visit www.asset-risk.com.
About Highbridge Principal Strategies, LLC
Highbridge Principal Strategies, LLC is a global private investment firm that invests across the capital structure in the public and private capital markets. HPS’ diversified investment platform includes investments in mezzanine debt private equity, senior secured leveraged loans, high yield bonds and structured credit products with approximately $22 billion of assets under management, including more than $2 billion of investments in energy and power.