Caballo Energy LLC said Wednesday it purchased Enid-based Eagle Chief Midstream LLC from Hiland Partners LP for an undisclosed price.
Eagle Chief, which is connected to more than 370 wells and serves 25 producers, controls a 600-mile natural gas gathering and processing system in northwestern Oklahoma, at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays. The Eagle Chief system includes natural gas gathering pipelines and compression and processing assets in Alfalfa, Blaine, Garfield, Major and Woods counties.
The Mississippi Lime and Cana Woodford Shale plays are rich in natural gas liquids, or NGLs. Over the past five years, NGLs have boomed as drilling companies exploit shale plays. Because NGLs are used as a feedstock for petrochemicals, energy analysts have said, production growth has been a boon for natural gas drilling. Overall demand for NGLs has increased 40 percent since 2008, said Kristen Holmquist, manager of NGL analytics at Denver-based Bentek Energy LLC.
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