ARB Midstream LLC, an energy midstream, logistics and marketing company based in Denver, Colorado, has acquired a controlling interest in the Platte River Gathering System (PRG) from Rimrock Midstream Holdings LLC.
The PRG system provides gathering for crude oil production in the heart of the prolific Denver-Julesburg Basin, which is home to the Niobrara and Wattenberg plays in Weld County, Colorado. The system is backed by multiple long-term producer commitments, and started transporting crude oil in April 2016. PRG is capable of moving up to 157,000 b/d and includes over 40 miles of crude oil gathering lines, truck unloading at the Lucerne Hub, and planned storage capacity of up to 600,000 barrels. PRG delivers to the Grand Mesa Pipeline, which delivers barrels to Cushing, Oklahoma.
Additionally, the company has appointed Pat McMurry as the senior vice president of gathering and transportation. McMurry joined the ARB management team after overseeing the development of PRG for Rimrock. McMurry has over 40 years of experience in midstream construction and business development, including multiple pipeline and terminal projects at Enterprise, TEPPCO and ExxonMobil.
ARB provides complete midstream and marketing solutions for crude oil, LPGs and refined products, by acquiring, developing and operating high-quality assets in plays with sustainable growth and low-cost production economics. In combination with ARB’s existing crude marketing and logistics business in the Denver-Julesburg and the greater Rocky Mountain market, the PRG transaction will support ARB’s goal of offering a fully-integrated midstream and marketing solution to producers in the Denver-Julesburg basin.
Davis, Graham & Stubbs LLP acted as legal advisors for ARB Midstream. Stephens Inc. acted as lead financial advisor for Rimrock Midstream Holdings; Baker & McKenzie LLP acted as legal advisors.
ARB Midstream, LLC is a privately held company, based in Denver, CO, that provides complete midstream and marketing solutions for crude oil, LPGs and refined products. ARB markets crude oil and operates assets in Colorado, Texas, Wyoming, North Dakota, and Calgary, AB.