Projects

 

 

Salt Creek Midstream, LLC

Formed in 2017, Houston-headquartered Salt Creek Midstream, LLC is a full service midstream provider primarily comprised of cryogenic processing facilities, gas and crude gathering pipelines, compression and treating facilities as well as water gathering and disposal services. The initial phase of the project was commissioned in April 2018. Salt Creek expects its processing capacity to reach 260 million cubic feet per day by the end of 2018, increasing to 460 million cubic feet per day late in Q1 2019, with additional expansion investments planned as producers are added to the system.

The greenfield development spans over 350,000 acres in gas dedications and approximately 385,000 acres in crude commitments across Culberson, Reeves, Ward, Winkler, Lea, Pecos, and Eddy Counties within the Delaware Basin.

Salt Creek is a joint venture of ARM Energy and funds managed by Ares Management, L.P. An ARM Energy subsidiary serves as operator of the project.

SCM Alpine, LLC

Construction has commenced construction on SCM Alpine LLC, a 445,000 Bbl/d capacity natural gas liquids (NGL) header system comprised of two pipeline segments that originate at both the Salt Creek and Apache processing facilities in southern Reeves County, Texas. The pipeline will provide flexibility by transporting the NGLs to Waha, where it will interconnect with downstream pipelines providing access to Mont Belvieu and Corpus Christi fractionation facilities. Apache Midstream, a subsidiary of Apache Corporation, has signed an option to acquire a 50% stake in SCM Alpine. The project is expected to be operational in Q1 2019.

West Trunk Line

Salt Creek Midstream’s 44-mile, 30” West Trunk Line is currently under construction. This 800 million cubic feet per day natural gas pipeline extends from SCM’s Pecos Cryogenic Processing plant just west of Pecos, Texas to North Central Culberson County, TX. Salt Creek has completed the 42-mile East Trunk Line which extends east from SCM’s Pecos plant to the Winkler Co. line. The East Trunk Line is currently being extended with 32 miles of 16” pipeline into Lea County NM and will be placed in service in late 2018.

Kingfisher Midstream

In February 2018, ARM Energy announced that the Company and its partners sold Kingfisher Midstream, LLC (“Kingfisher”) to Silver Run Acquisition Corporation II in exchange for an aggregate consideration of up to $1.55 billion in cash and stock.

Kingfisher provides midstream energy services, including crude oil and gas gathering, processing and marketing to producers in Oklahoma’s STACK play. ARM Energy formed Kingfisher in September 2015 in partnership with HPS Investment Partners. Since Kingfisher’s formation, ARM Midstream, on behalf of Kingfisher, successfully contracted acreage dedications of approximately 300,000 gross acres in the STACK play in Oklahoma. Kingfisher has natural gas processing capacity of 350mmcf/d and more than 400 miles of natural gas and crude oil pipelines. Kingfisher’s strategic firm transportation also provides residue solutions and flow assurance to its producer customers.

The company is now named Alta Mesa Resources, Inc. The management teams of Riverstone and Alta Mesa collectively will own approximately 33% of Alta Mesa Resources’ market capitalization and Kingfisher equity holders will own 14%.

SAFETY

At ARM Energy, safety is an integral part of our core values.

We are fully committed to providing a safe and secure environment for our employees and the communities in which we work. We operate our assets in compliance with all applicable laws and regulations and we train our employees to prioritize safety. We strive to manage our work responsibly, and we are dedicated to minimizing our environmental footprint. We are always looking to improve our safety programs, and it is one of our highest priorities to invest in the health and safety of our employees and the communities we operate in.