Meritage Midstream Services

Founded in November 2009, Meritage Midstream Services established itself as a provider of a full suite of midstream services for oil and gas producers. The company was formed with initial equity commitments from EnCap Energy Infrastructure Fund and TPH Partners, led by a management team that included Steve Huckaby, Nick Thomas, Bill Dickey, and Tim Pimmel. Early operations were centered on natural gas services in Texas's Eagle Ford shale, though these assets were later sold as the company shifted its strategic focus.

The company's core business revolves around providing natural gas gathering, compression, treating, and processing, as well as crude oil gathering and handling. Operating primarily in the Powder River Basin of Wyoming, Meritage serves exploration and production companies, managing the crucial link between extraction and market delivery. Its revenue is generated through long-term, fee-based contracts, often supported by acreage dedications and minimum-volume commitments from its clients. One of the company's significant milestones was the 2013 acquisition of Thunder Creek Gas Services, a move that substantially grew its footprint in the Powder River Basin. Over the years, Meritage expanded its market share in the basin's rich gas gathering and processing from 1% to over 50%.

The company's primary assets include an extensive network of approximately 1,500 miles of natural gas pipelines and a natural gas processing capacity of about 380 million cubic feet per day (MMcf/d). A key component of its infrastructure is the Thunder Creek NGL pipeline, a 120-mile regulated pipeline that transports natural gas liquids from its processing facilities. This infrastructure supports over 1.4 million dedicated acres from a diverse customer base. In a landmark event for the company, Meritage Midstream Services II, LLC was acquired by Western Midstream Partners in an all-cash transaction for $885 million, a deal announced in September 2023 and completed in October 2023.

Keywords: midstream services, natural gas gathering, gas processing, Powder River Basin, crude oil gathering, NGL transportation, energy infrastructure, gas compression, acreage dedication, fee-based contracts, Thunder Creek NGL pipeline, oil and gas producers, Western Midstream Partners, EnCap Energy, energy logistics, Wyoming energy, natural gas pipelines, condensate handling, gas treating, midstream acquisition