Durango Midstream will get backing from Morgan Stanley Energy Partners for expansion in the Scoop, Stack and Merge area after Durango bought assets from Aka Energy Group for an undisclosed amount. (Source: Hart Energy)
Houston’s Durango Midstream LLC finds itself with a partner following the company’s purchase of midstream assets in Texas, Oklahoma and Kansas on Nov. 20 for an undisclosed amount.
The day after the deal, on Nov. 21, Morgan Stanley Energy Partners (MSEP) entered a strategic partnership with Durango to contribute a “majority equity investment” that will support growth targeting the Midcontinent’s Merge, Scoop and Stack plays.
Durango is a natural gas gathering, processing and marketing company providing services to oil and gas producers in Texas, Oklahoma and Kansas. Durango is led by president and CEO Richard A. Cargile, who previously served as president of midstream operations for Energy Transfer Partners LP (NYSE: ETP).
MSEP, a part of Morgan Stanley Investment Management, said its partnership with Durango will provide additional resources to upgrade and expand its existing asset base and capabilities.
“The company’s initial growth projects are expected to focus on expansion of its gathering and processing system in Grady County, Okla., to support producers active in the rapidly growing Merge-Scoop-Stack plays of Central Oklahoma,” MSEP said.
Cargile told Hart Energy on Nov. 22 that Durango’s assets include infrastructure purchased from Aka Energy Group LLC, of Durango, Colo. Aka Energy was established in 2002 by the Southern Ute Indian Tribe. Cargile said the tribe retained its New Mexico and Colorado midstream assets.
Aka Energy’s website says it is active in the Rockies, Midcontinent and Permian Basin. Cargile said information about the assets Durango owned was still on Aka Energy’s website. The company’s assets include pipelines and gathering systems in the Texas Panhandle and throughout Kansas and Oklahoma.
Cargile said via email that he is in the process of relocating his company’s headquarters from Tulsa, Okla., to Houston.
Aka Energy’s website says it owned and operated 12 cryogenic gas processing, refrigeration, and treating plants with a total capacity of nearly 550 million cubic feet per day as well as 2,000 miles of gas gathering pipelines and 100,000 horsepower of compression, the company’s site says. It also produces about 700,000 gallons of NGL per day.
MSEP’s global network, reputation and history of success in the energy business “will help us accelerate our growth plans in the Midcontinent and expand into other leading oil and gas basins in the United States,” Cargile said in a news release. “We look forward to supporting our current and future customers with additional midstream infrastructure and world-class service.”
Robert Lee, MSEP managing director, said Durango Midstream offers an “exceptional team, strategic asset base and the attractive opportunities presented by nearby oil and gas activity.”
Darren Barbee can be reached at dbarbee@hartenergy.com.
Recommended Reading
Woodside, Chevron Agree to Swap Oil, LNG Assets
2024-12-19 - Woodside and Chevron have entered an agreement that shifts interests in oil, LNG and carbon capture projects with Chevron also paying Woodside $400 million.
Gevo Completes $210MM Red Trail Assets Deal for Ethanol Plant
2025-02-05 - Gevo has renamed an ethanol production plant and CCS assets acquired from Red Trail Energy as “Net-Zero North.”
NOG Spends $67MM on Midland Bolt-On, Ground Game M&A
2025-02-13 - Non-operated specialist Northern Oil & Gas (NOG) is growing in the Midland Basin with a $40 million bolt-on acquisition.
Freehold Closes $182MM Acquisition of Midland Basin Interests
2024-12-16 - Freehold Royalties’ acquisition from a private seller includes around 1,300 boe/d of net production and 244,000 gross drilling acres largely operated by Exxon Mobil and Diamondback Energy.
Bloom Energy, Chart Industries Form CCUS Partnership for Low-Emissions NatGas
2025-02-14 - Bloom Energy and Chart Industries aim to use natural gas and fuel cells to generate power through their carbon capture partnership.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.