Harvest Midstream, an affiliate of Hilcorp Energy Corp., announced the signing of a purchase and sale agreement with Ares Management funds to acquire Paradigm Midstream LLC. Financial terms of the deal were not disclosed.

Paradigm, a privately-held company based in Houston, operates gathering, storage, pipelines and rail in North Dakota and South Texas. The company鈥檚 assets are comprised of four wholly-owned gathering systems. 

In North Dakota, Paradigm owns the Charlson Gathering System, Van Hook Gathering System and Mountrail Gathering System. The Bakken assets transport nearly 100,000 bbl/d of oil and approximately 75 MMcf/d of natural gas. The systems are focused on the northern McKenzie County and Mountrail County production areas as well the Van Hook Peninsula. 

In South Texas, the South Texas Eagle Ford Gathering System assets transport approximately 14,000 bbl/d of oil. The systems consist of approximately 350 miles of trunk lines and gathering lines for oil, gas and water. Paradigm鈥檚 Eagle Ford efforts have focused on providing custom gathering, storage and transport solutions for producers located in La Salle, Zavala, Dimmit and Frio counties, Texas.

鈥淭he Paradigm Systems are a perfect fit for Harvest鈥檚 expanding network of first-class midstream assets,鈥� said Harvest CEO Jason C. Rebrook. 鈥淣ot only does this acquisition allow Harvest to further extend its footprint in the Eagle Ford, but with its systems in North Dakota, we will now expand our geographic presence into one of the country鈥檚 premier, high-quality basins.鈥�

The purchase also includes Paradigm鈥檚 ownership interest in two joint ventures with Phillips 66. The joint ventures own all of the Keene and Palermo storage terminals and 99% of the Sacagawea crude lines and the Blue Buttes gas line.

鈥淧aradigm鈥檚 commitment to responsible operations is in line with Harvest鈥檚 core values. We are dedicated to doing the right thing for our customers, our team and the communities where we live and work,鈥� Rebrook said. 鈥淲e look forward to closing this sale and responsibly delivering first class service to our customers.鈥�

Harvest has interests in more than 6,000 miles of pipelines in Alaska, Colorado, Louisiana, New Mexico, Ohio, Pennsylvania and Texas. In its last major publicized transaction, Hilcorp acquired 49% of the Trans-Alaskan Pipeline System (TAPS) in 2020 as part of $5.6 billion deal with BP.

The Paradigm sale, pending regulatory approvals, is expected to close in the second quarter of 2023.

Harvest Midstream, an affiliate of Hilcorp Energy Corp., announced the signing of a purchase and sale agreement with Ares Management funds to acquire Paradigm Midstream LLC. Financial terms of the deal were not disclosed.

Paradigm, a privately-held company based in Houston, operates gathering, storage, pipelines and rail in North Dakota and South Texas. The company’s assets are comprised of four wholly-owned gathering systems. 

In North Dakota, Paradigm owns the Charlson Gathering System, Van Hook Gathering System and Mountrail Gathering System. The Bakken assets transport nearly 100,000 bbl/d of oil and approximately 75 MMcf/d of natural gas. The systems are focused on the northern McKenzie County and Mountrail County production areas as well the Van Hook Peninsula. 

In South Texas, the South Texas Eagle Ford Gathering System assets transport approximately 14,000 bbl/d of oil. The systems consist of approximately 350 miles of trunk lines and gathering lines for oil, gas and water. Paradigm’s Eagle Ford efforts have focused on providing custom gathering, storage and transport solutions for producers located in La Salle, Zavala, Dimmit and Frio counties, Texas.

“The Paradigm Systems are a perfect fit for Harvest’s expanding network of first-class midstream assets,” said Harvest CEO Jason C. Rebrook. “Not only does this acquisition allow Harvest to further extend its footprint in the Eagle Ford, but with its systems in North Dakota, we will now expand our geographic presence into one of the country’s premier, high-quality basins.”

The purchase also includes Paradigm’s ownership interest in two joint ventures with Phillips 66. The joint ventures own all of the Keene and Palermo storage terminals and 99% of the Sacagawea crude lines and the Blue Buttes gas line.

“Paradigm’s commitment to responsible operations is in line with Harvest’s core values. We are dedicated to doing the right thing for our customers, our team and the communities where we live and work,” Rebrook said. “We look forward to closing this sale and responsibly delivering first class service to our customers.”

Harvest has interests in more than 6,000 miles of pipelines in Alaska, Colorado, Louisiana, New Mexico, Ohio, Pennsylvania and Texas. In its last major publicized transaction, Hilcorp acquired 49% of the Trans-Alaskan Pipeline System (TAPS) in 2020 as part of $5.6 billion deal with BP.

The Paradigm sale, pending regulatory approvals, is expected to close in the second quarter of 2023.