Silver Creek Midstream, LLC recently announced that it will acquire Red Butte Pipe Line LLC from Merit Energy Company. The acquisition includes crude oil gathering, transportation and storage assets located in the Big Horn and Wind River Basins of Wyoming.
Red Butte is a 530-mile crude oil gathering system with an expansive footprint across the Big Horn and Wind River Basins. Red Butte is anchored by a long-term dedication, and is currently the largest pipeline gathering asset transporting crude oil out of the Big Horn and Wind River Basins to Casper, Wyoming.
Silver Creek Midstream plans to continue expanding the company’s pipeline assets and service offerings in Wyoming.
“We are very excited to complete the acquisition of the Red Butte Pipeline system, which represents the first acquisition for Silver Creek since our formation in October of 2017. This is a quality asset with stable volumes, and we look forward to working with the team at Merit,” said Patrick Barley, founder and CEO of Silver Creek Midstream. “Red Butte is a great foundational asset for our company and provides Silver Creek a foothold as we look to expand into other parts of the state.”
Jason Downie, managing partner at Tailwater Capital, said, “We are very pleased with the completion of Silver Creek’s Red Butte acquisition, having closed the deal within eight weeks of initial discussions with Merit. This transaction exemplifies the Silver Creek team’s commitment to Wyoming and we look forward to putting more capital to work in and around this asset as well as other midstream opportunities in the state.”
Locke Lord served as exclusive legal advisor on the transaction to Silver Creek Midstream.
Aside from its Wyoming operations, Silver Creek Midstream operates crude oil gathering, transportation and storage services in Texas. Silver Creek is backed by an initial $150 million funding commitment from Tailwater Capital and Silver Creek management. Tailwater Capital has $2.1 billion in committed capital, more than $700 million of which is available for new investments in midstream assets and participating in non-operated upstream opportunities in select basins.
