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Williams Field Services Group, LLC, a subsidiary of The Williams Companies, Inc., is acquiring Cureton Front Range LLC, a Denver-based, growth-oriented midstream company focused on providing commercial solutions to oil and gas producers in the Denver-Julesberg (DJ) Basin.
Cureton’s asset base consists of over 260 miles of low- and high-pressure pipelines, 109 million cubic feet per day (MMcfpd) of natural gas processing capacity, and 64,000 horsepower of compression. The assets are underpinned by long-term contracts from blue-chip operators covering more than 200,000 dedicated acres and over two million acres of areas of mutual interest (AMIs), according to a news release from Tailwater Capital LLC, an energy and growth infrastructure private equity firm.
Tailwater and the Private Equity Group of Ares Management initially invested in Cureton in 2017 to pursue an anchored greenfield midstream strategy in the DJ Basin in Colorado, according to the release. Cureton’s initial project started with an acreage dedication from a single private producer and culminated in the successful development of a multi-customer midstream gathering and processing platform.
Tailwater said the acquisition is expected to close in December, subject to regulatory approvals. The transaction price was not disclosed.
Cureton’s flagship processing facility, the Front Range Gas Plant, started operations in December 2018 with more than 60 million standard cubic feet per day (mmscfd) of cryogenic processing and a stabilizer capacity of 5,000 barrels per day, according to the company website. The facility has more than 3,000 horsepower of refrigeration compression and more than 7,500 horsepower of residue compression. It also uses an advanced cycle recycle split vapor process to recover natural gas liquids (NGLs) to drive additional value to Cureton’s customers and independent gas producers.
Cureton’s Gilcrest Gas Plant, acquired in 2022, has up to 43 mmscfd of nominal gas processing capacity. Cureton’s processing facilities provide connections to major downstream delivery outlets for residue gas, including Colorado Interstate Gas and Public Service Co. of Colorado, and NGLs, including Conway and Mt. Belvieu, according to the website.
“This transaction represents yet another step forward for our team and positions Cureton for its next chapter of growth while holding true to our commitment to deliver the highest quality of service to our customers and communities in which we operate”, Cureton President and CEO Charlie Beecherl said. “I want to express profound gratitude to our exceptional team, whose remarkable work ethic, shared values, and commitment to our company’s culture were pivotal in driving the successful sale of our business. We are also thankful for Tailwater’s and Ares’ steadfast support as we navigated a constantly evolving market landscape. As we look to the future, we are confident our assets remain in capable hands with Williams and are poised for an exciting trajectory of growth in combination with Williams’ existing asset base”.
“We commend the Cureton team for the success they have demonstrated over the course of our partnership”, Tailwater Co-Founder and Managing Partner Edward Herring said. “Cureton has effectively expanded its presence in the oil-abundant rural landscape of the DJ Basin, emerging as a market leader thanks to its team’s substantial experience and strategic partnerships with oil and gas producers”.
“Cureton has continued to strategically enhance its operations, create a capital-efficient business, and demonstrate unwavering dedication to its customers, communities, and people”, Tailwater Partner David Cecere said. “Given the continued need for scale in the midstream sector, we believe it is an optimal time to monetize the business and are excited to provide another strong return for our investors”.
To contact the author, email rocky.teodoro@rigzone.com
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