Transaction Details: 

Enable Midstream is acquiring Velocity Holdings an integrated crude oil and condensate gathering and transportation company in the SCOOP and Merge plays, for $442 million.

Asset incude

• 150 miles of pipeline with capacity of 225Mbp/d
• 400,000 barrels of owned and leased storage
• 26 truck bays
• 60 percent interest in a 26-mile pipeline system joint venture with a third party that owns and operates a refinery connected to the Velocity system.
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VELOCITY ACQUISITION

The Velocity acquisition builds on Enable’s market-leading natural gas gathering and processing infrastructure position in the prolific SCOOP and Merge plays that have attracted substantial producer activity with some of the best well economics in the country. The Velocity crude and condensate system is comprised of approximately 150 miles of pipeline capable of flowing approximately 225,000 barrels per day (bpd), along with over 400,000 barrels of owned and leased storage and 26 truck bays capable of unloading more than 100,000 bpd. Included in these assets is Velocity’s 60 percent interest in a 26-mile pipeline system joint venture with a third party that owns and operates a refinery connected to the Velocity system. Velocity’s operations are backed by large area dedications and long-term, fee-based contracts with over 2 million acres dedicated from shippers, including acreage dedications from top SCOOP and Merge producers.

The Velocity acquisition will give Enable an integrated crude and natural gas midstream platform in the Anadarko Basin, enhancing Enable’s business development prospects, strengthening relationships with key current customers and providing the opportunity for operational synergies. Producers have dedicated additional rigs to the oil-rich SCOOP and Merge plays over the past year, and the move to pad drilling in these areas is expected to increase demand for crude oil gathering services. As the only integrated crude oil and condensate gathering and transportation system in the SCOOP and Merge plays, the Velocity system is poised for sustained growth from both new customers and the substantial drilling inventory of current customers on the system.