ARM Energy and HPS Begin Commercial Operations at Kingfisher Midstream Lincoln Gas Plant, Oklahoma
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Kingfisher Midstream, LLC officially began full operation of the Kingfisher Midstream Lincoln plant in Oklahoma earlier this month. ARM Midstream, a subsidiary of ARM Energy, began construction of the facility in September 2015 in partnership with capital provided by HPS Investment Partners, LLC.
“Bringing the Kingfisher Midstream Lincoln plant online and on schedule is an exciting milestone for our partnership and for producers in the STACK. The facility will greatly alleviate some of the production bottlenecks in the STACK area by providing 60,000 MCFD of needed processing capacity. Producers in the area may now benefit from an unconstrained gas gathering option as well as a centralized crude oil truck load out facility,” said Zach Lee, ARM’s chief executive officer.
“HPS greatly values its partnership with ARM and is excited to help launch this best-in-class midstream system for producers in the STACK. Development of the Kingfisher Midstream Lincoln plant reflects the increasing focus of HPS on investing in midstream assets in production areas, such as the STACK, where some of the best economics in the industry currently exist,” said Don Dimitrievich, a managing director at HPS.
The project is anchored by a long-term commitment of more than 100,000 net acres dedicated to Kingfisher Midstream, LLC. Phase one features a state-of-the-art, 60,000 MCFD cryogenic processing plant, more than 100 miles of high and low pressure gas gathering pipeline, more than 100 miles of crude gathering, a 50,000 bbl crude storage facility, condensate stabilization, and six crude oil truck loading stations. It includes 15,000 horsepower of compression, giving it the ability to accept low and high pressure gas from field production. Phase two will feature an additional 200,000 MCFD of processing capacity, incremental gas and crude gathering, and added market connectivity.
“Producers in the STACK continue to have impressive results from multiple horizons adding to the economic viability of the play. As the STACK develops, and as Kingfisher Midstream’s processing capabilities expand, the added processing capacity, firm residue take away, and crude pipeline connectivity to Cushing will ensure those economics are protected,” said Taylor Tipton, president of ARM Midstream and ARM Energy Management.
About HPS Investment Partners, LLC
HPS is a leading global investment firm with a focus on non-investment grade credit. Established in 2007, HPS currently has 92 investment professionals and is headquartered in New York with seven offices globally. HPS was originally formed as a unit of Highbridge Capital Management, LLC (HCM), a subsidiary of J.P. Morgan Asset Management. In March 2016, the principals of HPS acquired the firm from J.P. Morgan, which retained HCM’s hedge fund strategies. As of June 2016, HPS has approximately $30 billion of assets under management and since inception has invested more than $3 billion in the energy and power industries.
About ARM Energy
ARM is an independent producer services company that provides solutions through financial hedging advisory, physical marketing, and midstream solutions. ARM delivers value to its clients by identifying and capturing potential market upside and de-risking producers’ natural commodity long position across all of its service lines. ARM Energy Management (AEM) markets crude oil/condensate, natural gas, and natural gas liquids for more than 125 producer clients in all major producing basins throughout the United States. ARM leverages the industry knowledge and experience of its staff to offer a wide variety of reliable and competitively priced energy marketing and management services to its clients delivering tangible value. The company and its predecessors have operated multiple midstream assets in Pennsylvania, Texas and Louisiana since 2009. ARM has corporate headquarters in Houston and offices in Pittsburgh, Denver, Calgary, Oklahoma City, and Midland.
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