Following Occidental’s acquisition of Anadarko, Western Midstream became a standalone business in 2019 with Oxy becoming its general partner. The parent-child relationship has proven fortuitous for both, particularly in their shared basins of the #Permian, #Delaware, #DJ, and the #Powder River where Oxy operates more than 300,000 net acres. Reese Energy Consulting today is following the latest news from The Woodlands, Texas-based Western Midstream, which operates 14,172 miles of pipeline to include 7 natural gas and 14 crude oil and NGLs pipelines, 23 gathering systems, and 71 processing and treating facilities in the Permian, DJ, South Texas, Utah, Pa., and Wyo.

The company has now announced it will acquire Denver-based Meritage Midstream and its Powder River assets for $885 million. Highlights of the all-cash deal include 1,500 miles of gas gathering pipe, 380 MMCFD of processing capacity, and the 120-mile Thunder Creek NGL pipeline with a capacity of 38 MBPD. According to the Meritage website, the company also offers crude oil and condensate gathering, treating, blending, storage, and transportation but no word on whether these assets were part of the Western transaction. In any event, Western hails the PBR addition “transformative,” adding significant producer inventory, long-term contracts, and acreage dedications across 1.4 million acres, while increasing its total gas processing capacity to 440 MMCFD.