Ares Management LP announced Aug. 31 that a fund managed by its Ares EIF Group has entered into a definitive agreement with WPX Energy to acquire the Van Hook Gathering System in North Dakota in a transaction valued at $185 million. While the transaction is subject to customary conditions, it is expected to close during the fourth quarter.
The acquisition consists of pipeline systems that currently gather approximately 11,000 barrels of oil, 6,500 million cubic feet of natural gas and 5,000 barrels of water per day from WPX Energy’s Bakken shale oil assets. WPX Energy will continue to operate the Van Hook Gathering System.
“We are excited to make this acquisition since it fits the type of investment that the Ares EIF Group targets,” said Terence Darby, Partner and Co-Head of the Ares EIF Group, “a strong performing asset with stable and capable management and the potential for future expansion.”
Ares is a publicly traded, leading global alternative asset manager with approximately $88 billion of assets under management as of June 30, and more than 15 offices in the United States, Europe and Asia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles.
The Ares EIF Group, formerly known as Energy Investors Funds (EIF), was acquired by Ares in January. Founded in 1987, Ares EIF has a 28-year track record and is one of the first managers focused on the independent power and electric utility industry. Ares EIF’s investment strategy is to create geographically and technologically diversified portfolios of energy infrastructure investments via acquisitions as well as development and construction across the power generation, transmission and midstream sectors.