HOUSTON – A cross-office Reed Smith team represented Greenfield Midstream, LLC in a $155 million transaction to acquire a 20% membership interest in Saddlehorn Pipeline Company, LLC.

Related Professionals: Gary C. Johnson Peggy A. Heeg Jorge I. Gutierrez Leo N. Hitt Ali K. Burner James M. Pappenfus Ricky Raven

Oil pipeline of tanker colored blurred background

Saddlehorn owns and operates a pipeline system that runs from the DJ and Powder River basins in Colorado to storage facilities in Cushing, Oklahoma, with a current capacity to transport 190,000 bpd of crude oil. Greenfield and Noble Midstream Partners, acting through their existing joint venture company known as “Black Diamond Gathering LLC,” acquired the 20% membership interest in Saddlehorn from two of the existing three owners.

The terms for the acquisition required Black Diamond to pay the sellers $155 million and also obtain production commitments for up to 100,000 bpd from third-party producers, which will be transported on the Saddlehorn Pipeline. In exchange for the production commitment, the sellers agreed to carry Black Diamond for its share of the costs associated with two expansion projects on the Saddlehorn Pipeline, which will eventually have the capacity to transport 290,000 bpd of crude oil.