HOUSTON–(BUSINESS WIRE)–Aug 6, 2019–
Black Bear Midstream (“Black Bear”), a portfolio company of funds managed by Oaktree Capital Management, L.P. (“Oaktree”), announced it has entered into a seven year gas gathering and processing agreement with a Cotton Valley producer in Desoto and Caddo Parishes, LA.
“We continue to execute on our strategy to provide both lean and rich gas gathering services in support of our customers drilling both Haynesville and Cotton Valley formations in North Louisiana. The relationship we’ve built with this and other producers keeps us excited about the area and confirms our belief that we can continue attracting production to Black Bear’s competitive, high-optionality services,” said Rich DiMichele, Black Bear’s President and CEO.
Black Bear will build approximately 20 miles of 16 inch, rich gas gathering pipe to the west of its DeSoto Parish cryogenic processing plant to support both this contract and other producers on both sides of the Louisiana and Texas border.
“We’re very happy and humbled that producers continue trust us to jointly pursue their growth plans. We’ve been methodically expanding our service offerings and customer base since our team began managing Black Bear in 2016. We’re fortunate to be in a position to continue expanding the business both geographically and in our high value service offerings” said Travis Boeker, Black Bear’s EVP- Commercial. “Look for us to announce projects to extend our reach across the Texas border and throughout northern Louisiana. There has been increasing interest by regional pipelines targeting Gulf Coast markets to source gas within our catchment area. While we don’t have a dog in this long-haul fight, we believe it’s in our customer’s best interest to have options across these announced pipelines and we’re working to provide that optionality.”
About Black Bear Midstream
Black Bear Midstream is a gas gathering and processing company focused on providing bespoke midstream solutions for producers in Louisiana and east Texas drilling the Cotton Valley and Haynesville formations. The company has a high pressure gathering system providing dry and rich gas gathering with several interstate natural gas connections along with a 40-mile NGL pipeline connecting its 140 mmscf/d cryogenic gas processing plant to NGL markets in Mt. Belvieu, TX.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $120 billion in assets under management as of June 30, 2019. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 950 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.