The COLT Hub, Rangeland Energy's Crude Oil Loading Terminal In Williams County, North Dakota. (Photo: Business Wire)
Rangeland Energy, LLC (“Rangeland”) announced today that it has entered into a definitive agreement to sell the company to Inergy Midstream, L.P. (NYSE: NRGM) (“Inergy Midstream”) for $425 million. Rangeland is the owner and operator of the COLT system, the largest open-access crude oil distribution hub in North Dakota. The COLT system includes a large crude oil rail loading terminal in Williams County, North Dakota, and related storage and pipeline assets. The transaction is expected to close in early December.
Founded in 2009, Rangeland is a midstream energy company led by an experienced management team and backed by private equity commitments from EnCap Flatrock Midstream of San Antonio. Rangeland’s management team will retain the company name and continue to pursue midstream development opportunities across North America.
Citi served as Rangeland’s sole financial advisor for the transaction with Jones Day providing legal counsel.
The COLT system is strategically located in the heart of the prolific Bakken and Three Forks shale oil producing region. The system’s components include the COLT Hub, the COLT Connector and the Dry Fork Terminal. The COLT Hub serves as a point of liquidity for the distribution of Bakken crude oil throughout North American markets by providing customers with crude oil storage and connectivity to BNSF Railway Company and various inbound and outbound pipeline systems. The terminal was placed in service in early May 2012. The COLT Hub serves crude oil refiners, marketers and producers and has contracted aggregate volume commitments of approximately 150,000 barrels of crude per day. The COLT Connector is a 21-mile bidirectional pipeline that connects the COLT Hub to the Enbridge and Tesoro pipelines at Rangeland’s terminal at Dry Fork near the Beaver Lodge/Ramberg junction, the Banner gathering system and a planned connection to the Bear Tracker Energy gathering system.CEO Perspectives “This is an exciting day for both companies. It’s also a great day for the crude oil industry in the Bakken, which will be well served by Inergy’s dynamic new presence in the play,” said Rangeland CEO Chris Keene. “Inergy’s CEO, John Sherman, and the rest of his very seasoned leadership team have the experience and desire to serve our current customers with distinction and aggressively grow the business we’ve developed at COLT. We started with a piece of paper and a vision and now, just three years later, COLT is well positioned to be the premier crude oil terminal in the Bakken. I’m very proud of what the Rangeland team has accomplished in North Dakota in a very short period of time. The scope, quality and efficiency of the storage, rail and pipeline facilities we’ve put in place are unparalleled in the market.
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