Evolution Midstream LLC said June 5 it will acquire the Rowdy Gas Gathering System in the heart of the Powder River Basin, where activity has recently been on the rise.
As part of a binding transaction, Evolution said it agreed to purchase the Rowdy system from Lucid Energy Group for an undisclosed amount.
The Rowdy system serves oil and gas producers in the Powder River Basin in Campbell, Converse and Johnson counties, Wyo. The system is comprised of about 1,000 miles of gas gathering lines and 43,700 horsepower of compression.
Evolution said the extensive footprint of the Rowdy system also provides the foundation for additional growth opportunities.
“We see a significant opportunity in the Powder River Basin, where there is increasing activity and focus by producers seeking entry into an exciting, stacked play,” Evolution CEO Raj Basi said in a statement. “The acquisition of the Rowdy system is the first step in developing our comprehensive vision for gas gathering, treating and processing in the area.”
The company plans to embark on an extensive capital program to increase system capacity and reach, offering producers of all sizes a comprehensive gas gathering and processing solution, as well as crude gathering services, according to the release.
Evolution said it expects the transaction to close by July 1.
Based in Denver and founded in 2015, Evolution is an independent midstream company serving oil and gas producers operating in unconventional shale plays in the Rocky Mountain region. The company is backed by San Antonio-based EnCap Flatrock Midstream, which manages investment commitments of nearly $6 billion, the release said.
Lucid Energy Group, based in Dallas, is also backed by EnCap Flatrock Midstream.
Recommended Reading
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.
Tech Trends: QYSEA’s Artificially Intelligent Underwater Additions
2024-02-13 - Using their AI underwater image filtering algorithm, the QYSEA AI Diver Tracking allows the FIFISH ROV to identify a diver's movements and conducts real-time automatic analysis.
Subsea Tieback Round-Up, 2026 and Beyond
2024-02-13 - The second in a two-part series, this report on subsea tiebacks looks at some of the projects around the world scheduled to come online in 2026 or later.