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4 AM Acquiring Oklahoma Midstream Properties from White Star

Oklahoma City-based independent White Star Petroleum LLC has sold its midstream gathering system and associated assets in the state’s stacked reservoirs to 4 AM Midstream, a cross-town operator, for an undisclosed amount.

The assets in Logan, Noble and Payne counties include 253 miles of natural gas gathering pipelines, including 26 miles of high-pressure lines, along with 214 miles of crude oil gathering pipelines.

As part of the sale, White Star signed a 20-year fixed-fee agreement to provide midstream services for a defined dedication area.

White Star CEO Elliot Chambers said the sale would strengthen the balance sheet, "providing additional flexibility to invest capital in its core upstream operations.”

Majority owned by private equity giant The Energy & Minerals Group (EMG), White Star's midstream sale followed a binge of buying within the STACK, aka the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, and the SCOOP, i.e., the South Central Oklahoma Oil Province.

Earlier this year White Star acquired roughly 49,000 net acres in three separate deals, and last year bought $200 million of Mississippian Lime/Woodford Shale assets from Devon Energy Corp.

4 AM is an asset management company that acquires, develops, owns and operates pipeline assets. Its midstream business “takes a regional geographic approach,” centered on oil and gas production in Appalachia, the Denver-Julesburg Basin and various Oklahoma and West Texas areas, with plans to potentially expand. 4 AM focuses on small- to medium-size crude oil and natural gas gathering systems and delivery to end-users, including gas-fired generation customers.

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