With Hawkeye Midstream LLC, United Energy Trading LLC (UET) sold the Pawnee Terminal when it sold subsidiary UET Midstream LLC, UET said July 23. UET Midstream was sold to ARC Terminals Holdings LLC, a subsidiary of ARC Logistics Partners LP (ARCX), for $76.6 million in cash and ARCX common units.
The Pawnee Terminal is a new, operational crude oil terminal. It is the primary injection site for Tallgrass Energy Partners’ Northeast Colorado Lateral on the Pony Express Pipeline, which takes crude oil from the Bakken and Niobrara formations to Cushing, Okla.
The sale process took more than two years, UET said. UET retains substantial throughput capacity for third party producers.
The acquisition is "a template for additional upstream, greenfields asset development providing a bridge between producers' needs and larger, acquisition-minded midstream operators," said Tom Williams, president of UET.
United Energy Trading LLC is based in Denver.
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