Ares Management, L.P. (NYSE:ARES) announced today that a fund managed by its Ares EIF Group has agreed to acquire the Van Hook Gathering System in North Dakota from WPX Energy (NYSE: WPX) in a transaction valued at $185 million. While the transaction is subject to customary conditions, it is expected to close during the fourth quarter.
The acquisition consists of pipeline systems that currently gather approximately 11,000 barrels of oil, 6,500 million cubic feet of natural gas, and 5,000 barrels of water per day from WPX Energy’s Bakken shale oil assets. WPX Energy will continue to operate the Van Hook Gathering System.
“We are excited to make this acquisition since it fits the type of investment that the Ares EIF Group targets – a strong performing asset with stable and capable management and the potential for future expansion,” said Terence Darby, Partner and Co-Head of the Ares EIF Group.
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