Superior Pipeline acquires large STACK play acreage

Full-service midstream energy company Superior Pipeline Company has signed a natural gas gathering and processing agreement with an active producing firm in the STACK play, Oklahoma, US.

The long-term, fee-based agreement replaces a prior contract, expanding the producer’s area to around 345,000 acres. This area lies in the Cashion system, which comprises two cryogenic processing plants situated in Kingfisher County, Oklahoma.

Superior chief operating officer Mike Hicks said: “We are pleased to further our relationship with such an active and successful producer.

“This is another step in Superior’s plan to expand our existing assets while also continuing to acquire synergistic midstream assets.”

The producer expects to continue the development of four production zones, the Oswego, Mississippian, Woodford and Hunton formations, within Superior’s acreage.

Superior Pipeline is a joint venture (JV) of Unit Corporation and SP Investor Holdings, with each holding 50% stake.

In March 2018, Unit Corporation agreed to sell a 50% equity interest in its wholly owned subsidiary Superior Pipeline for $300m in cash.

In April 2018, Unit Corporation sold 50% of Superior Pipeline to SP Investor jointly owned by OPTrust and funds managed by Partners Group.

In December 2010, Superior completed the installation and start-up of the Lone Tree gas processing plant in Texas, US.