The midstream sector sees surging global and domestic demand with fewer players left to offer ‘wellhead to water’ services.
The additional growth of the liquids export market will be tied to an unpredictable natural gas market, experts say.
ARC Resources did not provide additional information on the divested assets, which the company said had results in proceeds of $59.2 million.
The latest acquisitions in the midstream sector are focusing on natural gas gathering and processing to secure a spot in the lucrative NGL market.
Mach Natural Resources is offering to sell common units to fund two pending acquisitions in the Ardmore and Anadarko basins.
Voyager Midstream acquired about 550 miles of natural gas pipelines, 400 MMcf/d of gas processing capacity and 12,000 bbl/d of NGL production capacity.
The past decade has been difficult for the Midcontinent, where E&Ps went bankrupt and pulled back drilling activity. But bountiful oil, gas and NGL resources remain untapped across the Anadarko, the SCOOP/STACK plays and emerging zones around the region.
A boost in propane and ethane development is tied to the opening of the Matterhorn Pipeline in the Permian, evidence of the increasingly closer link between different sectors of the energy industry.
Kinder Morgan’s challenge to ONEOK over Bakken NGL could upset the market’s balance.
ONEOK’s latest deals to acquire controlling interest in midstream companies EnLink and Medallion are considered “neutral” for the company’s credit rating.