In what could be part of a trend identified by Cowen & Co., White Star Petroleum LLC said Aug. 15 that it has sold its interest in a midstream gathering system and associated assets to Oklahoma City-based 4 AM Midstream LLC, a midstream company founded this year.
The Mid-Continent region assets are in the Oklahoma counties of Logan, Noble and Payne and include 253 miles of gas gathering pipelines—including 26 miles of high pressure lines—and 214 miles of crude oil gathering pipelines. In connection with the transaction, White Star and 4 AM signed 20-year crude and gas gathering agreements covering a defined dedication area.
“The divestiture of these non-core assets strengthened White Star’s balance sheet, which provides the company with additional flexibility to invest capital in its core upstream operations and continue to create value for its investors,” Elliot J. Chambers, White Star’s CEO, said in a statement.
White Star is majority owned and controlled by an affiliate of The Energy & Minerals Group. Porter Hedges LLP acted as legal adviser to White Star.
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