Rangeland Energy Acquires Land in Southeast New Mexico for Large Crude Oil & Frac Sand Terminal
Sugar Land, TX – March 18, 2013 - Rangeland Energy announced today that the company has executed contracts to purchase up to 770 acres near Loving, New Mexico, and will begin development of a large terminal facility capable of handling crude oil, frac sand, pipe and other products. Rangeland expects the terminal to be in service before the end of the year. Rangeland will also build a pipeline system in southern Eddy County, New Mexico, to maximize terminal connectivity to existing and planned pipelines for both the receipt and delivery of crude oil.
Founded in 2009, Rangeland is a midstream energy company led by an experienced management team and backed by private equity commitments from EnCap Flatrock Midstream of San Antonio. Rangeland’s New Mexico terminal will be a full-service facility for crude oil producers and buyers in the Delaware Basin. Rangeland will receive and stage frac sand and pipe for the production of crude oil, while receiving, storing and distributing crude oil to multiple downstream markets via pipeline and rail.
Rangeland will receive crude oil produced in southeast New Mexico and West Texas via inbound trucks and gathering pipelines. The terminal will provide crude oil storage and outbound access to existing and planned pipelines. Unit-train loading facilities will allow Rangeland’s customers to deliver crude to high-value markets across the country that are not currently accessible by pipeline. Initial rail services will include transload (truck-to-rail) and manifest rail loading. In addition, Rangeland has acquired sufficient acreage to construct facilities to receive frac sand by manifest or unit-trains, to store and stage the sand, and to load trucks for distribution to oil field service companies in the area. The terminal will also be capable of handling trans-modal rail business for other oil field materials such as drill pipe. The facility will be served by BNSF Railways.
“We are excited to begin development of the company’s next terminal and play a role in the rapid production growth taking place in southeast New Mexico and West Texas. Our objective is to draw on our successful track record in North Dakota to provide a one-stop facility that can service drilling activity and market crude oil produced in New Mexico and West Texas,” said Chris Keene, Rangeland’s president and CEO.
Rangeland developed a similar system in North Dakota. Known as COLT, the system serves as a point of liquidity for Bakken crude oil throughout North American markets by providing customers with crude oil storage and connectivity to the BNSF Railway Company and various inbound and outbound pipeline systems. The system was sold to Inergy Midstream L.P. (NYSE: NGRM) in December 2012 for $425 million.
Rangeland expects to invest more than $150 million in the New Mexico terminal and supporting infrastructure. The company is currently working with customers to negotiate and execute commercial contracts at the terminal.
About Rangeland Energy, LLC
Headquartered in Sugar Land, Texas, Rangeland Energy was formed in 2009 to focus on developing, acquiring, owning and operating infrastructure for crude oil, natural gas and natural gas liquids. The company’s primary focus has been in growing oil and gas shale producing areas. The Rangeland team represents more than 150 years of combined midstream experience and is backed by an equity commitment from EnCap Flatrock Midstream. For more information please visit www.rangelandenergy.com.
About EnCap Flatrock Midstream
Based in San Antonio, EnCap Flatrock Midstream provides value-added private equity capital to proven management teams focusing on midstream energy infrastructure opportunities throughout North America. With more than 100 years of midstream experience, the principals at EnCap Flatrock Midstream manage investment commitments of more than $3 billion from a broad group of prestigious institutional investors. Visit www.efmidstream.com for more information.