Tallgrass Energy Partners announces acquisition of water infrastructure assets
Tallgrass Energy Partners announced the acquisition of water infrastructure assets that establishes Tallgrass's footprint in the Bakken, delivers new business for its subsidiary BNN Water Solutions and provides Tallgrass a platform from which to build additional midstream business in the Bakken. BNN acquired Buckhorn SWD Solutions and Buckhorn Energy Services, which collectively own 10 salt water disposal wells and approximately 39 miles of produced water gathering infrastructure for a cash purchase price of approximately $95M. The system currently services approximately 133,000 dedicated acres for multiple Bakken producers, including XTO Energy, Inc. Tallgrass anticipates that BNN will spend an additional approximately $45M in 2018 to further expand the system to accommodate increased dedicated water volumes resulting from expected new drilling and completions. Once the additional infrastructure is completed, Tallgrass expects the total investment will approximate a five times cash flow multiple.