Meritage Acquires Thunder Creek From Devon Energy And PVR Partners

(RTTNews) - Meritage Midstream Services II LLC said Tuesday it has acquired 100 percent ownership of Thunder Creek Gas Services LLC from Devon Energy Corp. (DVN) and PVR Partners L.P. (PVR).

Established in 1998, Thunder Creek owns and operates natural gas gathering, treating and processing assets in Wyoming's Powder River Basin, including more than 500 miles of high- and low-pressure gas gathering pipelines, three natural gas treating facilities, compression and gas processing facilities, and various NGL and condensate handling facilities.

"The Thunder Creek system is a great addition to the significant midstream footprint we are building in one of the country's most exciting emerging shale basins," said Meritage CEO Steve Huckaby.

Meritage is also developing the Black Thunder Terminal, a joint venture with Arch Coal (ACI). Located in Campbell County, Wyoming, at Arch Coal's Black Thunder mining complex, the terminal will provide storage, blending and rail loading services for crude oil and condensate produced in the Powder River Basin. Meritage expects to expand the Thunder Creek gathering system to provide pipeline service to the terminal.

Meritage is backed by initial equity commitments of up to $500 million from Riverstone Holdings LLC of New York.