United Energy Trading LLC (UET), together with Hawkeye Midstream LLC, has sold 100% of its subsidiary, UET Midstream LLC (Midstream), to ARC Terminals Holdings LLC, a wholly owned subsidiary of ARC Logistics Partners LP (ARCX), for a total adjusted sales price of $76.6 million consisting of both cash and ARCX common units.
The sale focused on the principal assets of Midstream, namely a newly constructed, operational crude oil terminal (the Pawnee Terminal) and proximal development site both located in the northeast portion of Colorado's Niobrara play. The Pawnee Terminal is the primary injection point into Tallgrass Energy Partners' Northeast Colorado Lateral of the Pony Express Pipeline, a major pipeline transporting crude oil produced from the Bakken and Niobrara formations to Cushing, Oklahoma.
UET retains substantial throughput capacity at the Terminal available to third-party producers, in addition to retention of major crude oil purchase contracts utilizing the terminal and transportation to Cushing.
UET is a privately held, Denver, Colorado-based oil and gas marketing and logistics company and a subsidiary of Bismarck-based United Energy Corp. UET purchases, transports, and/or sells some 1.5 bcf/day of natural gas on over 80 pipelines and approximately 150,000 bbl/day of crude oil on over 20 pipelines and via over 1,000 rail cars throughout North America.