Concho Resources Inc. and Frontier Midstream Solutions Announce Midstream Joint Venture
April 15 2019 - 7:15AM
Business Wire
Joint Venture to Build Beta Crude Connector
System in Midland Basin
Concho Resources Inc. (NYSE: CXO) (“Concho”) and Frontier
Midstream Solutions IV, LLC (“Frontier”) announced today that
Concho and Frontier have executed an agreement to create Beta Crude
Connector, LLC (“BCC”). Concho and Frontier will each own a 50%
equity interest in BCC, with Frontier serving as operator. BCC will
build and provide crude oil gathering, transportation and storage
services in the Northern Midland Basin, supporting continued oil
production growth in the region.
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The new gathering and transportation system will consist of an
approximately 100-mile gathering system, 250,000 barrels of crude
oil storage facilities as well as truck terminals. The pipeline
system will have the initial capacity to deliver 150,000 barrels
per day of crude oil to multiple delivery points, accessing local
refineries and connecting to several downstream pipelines.
Following an open season set for April 2019, construction will
commence, targeting initial flows in mid-2019.
BCC will file for FERC authority to operate as a common carrier
pipeline and solicit interest from other producers and marketers
for capacity on the new system. In conjunction with the joint
venture agreement, Concho has agreed to enter into a long-term
acreage dedication agreement with BCC.
Jack Harper, President of Concho, commented, “We are excited to
partner again with Frontier in the development of the Beta Crude
Connector. Through the joint venture, we will leverage Frontier’s
midstream expertise and enhance the value of our high-quality
footprint in the Midland Basin with a reliable, cost-efficient
gathering and transportation solution. Importantly, this is a
compelling investment opportunity that we can make with no changes
to our capital plans.”
Dave Presley, Frontier’s Chief Executive Officer said, “We are
pleased that Beta Crude Connector will be the latest of our
full-service midstream solutions and our second joint venture
partnership with Concho as we demonstrate our commitment to quality
partnerships and solutions for producers once again. We are pleased
to have a world-class producer in Concho as our partner and are
excited with the quality of the resource behind it. We are
dedicated to the successful operations and growth of the Beta Crude
Connector.”
Concho Resources Inc.
Concho Resources (NYSE: CXO) is one of the largest
unconventional shale producers in the Permian Basin, with
operations focused on acquiring, exploring, developing and
producing oil and natural gas resources. Concho is at the forefront
of applying advanced technology and large-scale development to
safely and efficiently maximize resource recovery while delivering
attractive, long-term economic returns. We are working today to
deliver a better tomorrow for our shareholders, people and
communities. For more information about Concho, visit
www.concho.com.
Frontier Midstream Solutions IV, LLC
Frontier Midstream Solutions IV, LLC, headquartered in Tulsa,
Oklahoma, is owned by Frontier Energy Partners II, LLC and certain
funds of Energy Spectrum Capital. The company is a full-service
midstream company focused on the development of new midstream crude
oil and natural gas infrastructure in the Permian Basin and other
basins throughout the lower 48 states. For more information please
visit www.frontierenergyllc.com.
Energy Spectrum Capital
Founded in 1995, Energy Spectrum Capital ("Energy Spectrum") is
a Dallas, Texas-based private equity firm focused on partnering
with premier management teams that are pursuing compelling
opportunities in the midstream sector of the North American oil and
gas industry. To date, Energy Spectrum has successfully raised
approximately $4.4 billion of equity capital across eight funds.
Frontier Midstream Solutions IV, LLC is supported with capital from
Energy Spectrum Partners VII, LP and Energy Spectrum Partners VIII,
LP, the firm’s most recent fund. For more information please visit
www.energyspectrum.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190415005230/en/
CONCHOINVESTOR
RELATIONSMegan P. HaysVice President of Investor
Relations and Public Affairs432.685.2533
MEDIAMary T. StarnesManager of Public
Affairs432.221.0477
FRONTIERKen
SnyderChief Commercial
Officer402.677.7655ksnyder@frontierenergyllc.com
Chris GuglielmoDirector of Business
Development918.388.8418cguglielmo@frontierenergyllc.com
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