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.
“We are also pleased with the results we’ve produced for EnCap Flatrock’s investors. EnCap Flatrock has been a great equity partner, bringing midstream expertise to the table and providing the financial strength we needed to develop COLT. Through this ongoing relationship, Rangeland Energy is well positioned and funded to continue developing and growing its business in other emerging regions,” Keene said.“We look forward to welcoming Rangeland’s customers and the highly talented employees at COLT into the Inergy family. The COLT assets provide Inergy with a solid position in this prolific region and are a great complement to our existing midstream operations,” said Inergy Chairman and CEO John J. Sherman. COLT System Specifics Construction of the COLT Hub began in May 2011. With six 120,000-barrel storage tanks and two 8,700-foot rail loops, the COLT Hub accommodates large 120-car unit trains and is capable of moving more than 120,000 barrels of crude oil per day out of the Bakken Shale. The COLT Connector, a 21-mile bidirectional pipeline connects the COLT Hub to Rangeland’s terminal at Dry Fork near the Beaver Lodge/Ramberg junction. The COLT Connector is capable of transporting an additional 70,000 barrels per day by pipeline. The COLT system serves four large crude oil refiners/marketers including Tesoro Corporation and Flint Hills Resources. Rangeland has inbound gathering connection agreements with Bear Tracker Energy, the Highland Crude Market Center and the Tesoro High Plains Pipeline as well as outbound connections with Enbridge and Tesoro at its terminal near Beaver Lodge/Ramberg. Under terms of the agreement, all of the Rangeland employees working in North Dakota will be invited to work for Inergy. The acquisition is subject to customary regulatory filings and approvals. About Rangeland Energy, LLC Headquartered in Sugar Land, Texas, Rangeland Energy, LLC was formed in 2009 to focus on developing, acquiring, owning and operating infrastructure for crude oil, natural gas and natural gas liquids. The company’s primary focus has been in North Dakota and other growing oil and gas shale producing areas. The Rangeland team represents more than 100 years of combined midstream experience and is backed by an equity commitment from EnCap Flatrock Midstream. For more information please visit www.rgldenergy.com. About EnCap Flatrock Midstream Based in San Antonio, EnCap Flatrock Midstream provides value-added private equity capital to proven management teams focusing on midstream energy infrastructure opportunities throughout North America. EnCap Flatrock is led by Managing Partners William D. Waldrip, William R. Lemmons Jr. and Dennis F. Jaggi. With more than 100 years of midstream experience, the principals at EnCap Flatrock Midstream manage investment commitments of nearly $3 billion from a broad group of prestigious institutional investors. Visit www.efmidstream.com for more information. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50465406&lang=en