WICHITA, Kan.--(BUSINESS WIRE)--MVP Holdings, LLC (“MVP”) today announces the formation of Great Salt Plains Midstream Holdings, LLC (“GSPM”), a joint venture between MVM Midstream LLC (an entity formed with Energy Spectrum Partners VII LP and MVP Holdings) and Chisholm Midstream, LLC (a subsidiary of Chisholm Oil & Gas, LLC, “Chisholm”). The new JV will expand crude oil and gas infrastructure and provide more optionality for producers in the rapidly growing STACK play of Central Oklahoma. In addition, GSPM will enable its producer customers in the area multiple marketing options, including a direct line into the strategic Cushing crude oil complex.
MVP will contribute recently acquired assets, including the 115-mile Great Salt Plains Pipeline from Cherokee, OK to Cushing, OK to the joint venture, which is supported by long-term acreage dedications and throughput commitments from active Oklahoma producers and crude marketing companies. Additional plans call for immediate expansion of the Great Salt Plains crude system to provide for initial crude gathering and transportation of up to 40,000 BPD.
The natural gas STACK platform will consist of the placement and build out of a state-of-the-art cryogenic processing facility in Major County, OK. The Silver Lake Plant will have initial capacity to process up to 70 million cubic feet of natural gas per day (MMcf/d) with expansion capacity of up to 220 MMcf/d. The facility will include over 130 miles of gas gathering lines and multiple compressor stations. It is expected to be in service in the second quarter of 2018.
“Mid-continent producers continue to actively invest in acreage and drilling in the STACK area extending north and west. MVP and our investment partners are dedicated to providing the full range of midstream services to our producer community to support this crucial development of energy resources,” said MVP Holdings President and CEO, Gary Navarro.
“We are very supportive of the MVP management team and appreciate their capabilities in managing and constructing a system of this magnitude,” said Jim Benson, Managing Partner of Energy Spectrum, “and we have had a 20+ year relationship with the principals of MVP. We also welcome the opportunity to work with Chisholm and its sponsor, who have considerable experience and resources in this area.”
“We view this joint venture with MVP/Energy Spectrum as strategic and value enhancing to our upstream assets,” said Bob Zinke, CEO of Chisholm.
About MVP Holdings, LLC
MVP Holdings is a privately owned energy logistics company, headquartered in Wichita, Kansas. MVP and its subsidiaries MV Purchasing, LLC and MV Pipelines, LLC, MVP Midstream, LLC, provide gathering, transportation, processing, storage, distribution, marketing, and other midstream services to independent oil and natural gas producers, refiners of petroleum products, and other market participants located throughout the United States
About Energy Spectrum Partners
Energy Spectrum Partners was founded in 1996 to manage private equity funds that make direct investments in well-managed companies that acquire, develop and operate midstream energy assets. This investment will be made from Energy Spectrum Partners VII LP, a $1.225 billion Fund. As an established private equity fund dedicated to the midstream energy industry, Energy Spectrum is a valuable partner to management teams seeking to build energy companies and create equity value.
About Chisholm Oil and Gas, LLC
Chisholm Oil and Gas, LLC was formed in January of this year with backing from funds affiliated with Apollo Global Management, LLC. Chisholm owns a substantial oil and gas leasehold position (approximately 75,000 net acres) in the optimal footprint of the STACK play.
Paul Hastings LLP and Foulston Siefkin LLP served as legal counsel to MVP Holdings. Vinson & Elkins LLP represented Chisholm.