Evolution Midstream LLC said June 5 it will acquire the Rowdy Gas Gathering System in the heart of the Powder River Basin, where activity has recently been on the rise.
As part of a binding transaction, Evolution said it agreed to purchase the Rowdy system from Lucid Energy Group for an undisclosed amount.
The Rowdy system serves oil and gas producers in the Powder River Basin in Campbell, Converse and Johnson counties, Wyo. The system is comprised of about 1,000 miles of gas gathering lines and 43,700 horsepower of compression.
Evolution said the extensive footprint of the Rowdy system also provides the foundation for additional growth opportunities.
“We see a significant opportunity in the Powder River Basin, where there is increasing activity and focus by producers seeking entry into an exciting, stacked play,” Evolution CEO Raj Basi said in a statement. “The acquisition of the Rowdy system is the first step in developing our comprehensive vision for gas gathering, treating and processing in the area.”
The company plans to embark on an extensive capital program to increase system capacity and reach, offering producers of all sizes a comprehensive gas gathering and processing solution, as well as crude gathering services, according to the release.
Evolution said it expects the transaction to close by July 1.
Based in Denver and founded in 2015, Evolution is an independent midstream company serving oil and gas producers operating in unconventional shale plays in the Rocky Mountain region. The company is backed by San Antonio-based EnCap Flatrock Midstream, which manages investment commitments of nearly $6 billion, the release said.
Lucid Energy Group, based in Dallas, is also backed by EnCap Flatrock Midstream.
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