Tallgrass Energy Partners LP (NYSE: TEP) said Dec. 16 it has picked up the Niobrara Shale water business of Whiting Petroleum Corp. (NYSE: WLL) located in Weld County, Colo.
BNN Water Solutions, a subsidiary of the Leawood, Kan.-based company, has closed on the $75 million acquisition of Redtail Water System from a Whiting subsidiary.
The acquisition includes a fresh water delivery and storage system and a produced water gathering and disposal system that together comprise 62 miles of pipeline along with associated fresh water ponds and disposal wells.
The purchase agreement with Whiting includes a five-year fresh water service contract and a nine-year gathering and disposal contract, each of which includes annual minimum volume commitments in line with Whiting’s currently expected volumes.
Whiting also dedicated about 148,000 acres to the Redtail Water System.
Tallgrass expects the acquisition to be immediately accretive to unitholders, the release said.
The company also said it intends to recommend a 32% year-over-year increase in its fourth-quarter distribution to the board of directors of its general partner.
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