Published: March 6, 2020 |

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Crestwood Equity Partners has begun commercial operations at the Bucking Horse II processing plant in Converse County, Wyoming in the Powder River Basin. The Bucking Horse II plant is a 200 MMcf/d processing plant that brings Crestwood’s total processing capacity in the basin to 345 MMcf/d and allows Crestwood to offer producer customers the best natural gas and gas liquid recoveries in the basin.

Additionally, Crestwood has entered into a new gathering and processing agreement to provide wellhead services for Occidental Petroleum’s 2020 delineation program in the Powder River Basin. The dedication is on the eastern portion of the existing Jackalope Gas Gathering Services system and based on the close proximity of these wells to the existing system, Crestwood expects minimal incremental capital requirements to connect the new wells. Occidental is one of the largest operators in the basin with approximately 400,000 net undeveloped acres.

“Today marks a key milestone for Crestwood as we bring the Bucking Horse II plant fully online and complete our three-year investment program to align our assets with our producers’ plans in our core growth basins. I want to congratulate all of the Crestwood employees that did a tremendous job to bring the plant into service safely and under-budget, and we are excited to welcome Occidental, a premier investment-grade operator, to our customer base in the basin,” said Robert G. Phillips, chairman, president, and chief executive officer.

The multiple stacked plays in the basin provide enormous potential for our producers, and as a result, capital continues to be allocated to growing oil production in the basin. Crestwood is pleased to be the largest full-service gathering and processing company in the Powder River Basin and will continue to work with our customers and off-set producers to support their drilling and development plans in the coming years,” added Phillips.

There are currently 19 rigs running in the Powder River Basin, three of which are running on acreage dedicated to the Jackalope system. In full-year 2019, the Jackalope system averaged gathering volumes of 145 MMcf/d and processing volumes of 125 MMcf/d, increases of 41 percent and 46 percent, respectively, over full-year 2018. Crestwood expects to connect 45 – 50 wells to Jackalope in 2020 based on current development plans from Chesapeake Energy, Occidental, and Panther Energy, and estimates volume growth of 10 percent for gathering volumes and 15 percent for processing volumes over full-year 2019. With the Bucking Horse II plant complete, Crestwood’s capital requirements in the basin will decrease substantially, with future capital invested towards various expansion and optimization projects across the system including line looping and compression.

About Crestwood Equity Partners LP
Based in Houston, Texas, Crestwood Equity Partners is a master limited partnership that owns and operates midstream businesses in multiple shale resource plays across the United States. Crestwood Equity is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation, terminalling, and marketing of NGLs; gathering, storage, terminalling and marketing of crude oil; and gathering and disposal of produced water.

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