MDU Resources subsidiary signs sale agreement
Published by Francesca Brindle,
Editorial Assistant
Hydrocarbon Engineering,
WBI Energy Midstream, LLC, an indirect, wholly owned subsidiary of MDU Resources Group, Inc. (MDU), has announced that it has entered into a purchase and sale agreement to sell its 50% non-operating ownership interest in the Pronghorn natural gas processing plant near Belfield, North Dakota.
WBI Energy Midstream co-owns the plant and associated natural gas and oil-gathering pipelines with Whiting Oil and Gas Corporation. Tesoro Logistics Rockies, LLC, has agreed to purchase the plant and associated gathering lines for US$200 million. The transaction is expected to close in the first quarter of 2017 (1Q17), pending Federal Trade Commission approval and satisfaction or waiver of customary closing conditions.
WBI Energy Midstream acquired its interest in the Pronghorn facilities in May 2012 for US$66 million. The company's share of the sale price would be approximately US$100 million.
"This sale allows us to strengthen our balance sheet and provide cash to invest in other opportunities," said Martin Fritz, President and CEO of WBI Energy Midstream. "After recently exiting the refining business, this sale further reduces our exposure to commodity prices and reduces overall risk in our portfolio of assets. Also, as a non-operating owner of the plant, the sale is not expected to impact our employees."
In addition to the plant, associated assets include 137 miles of natural gas-gathering pipeline and 143 miles of oil-gathering pipeline.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/22112016/mdu-resources-subsidiary-signs-sale-agreement/
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