SemGroup Energy Partners, L.P. has announced that it has acquired the Eagle North Pipeline System, a 130-mile, 8-inch pipeline that originates in Ardmore and terminates in Drumright from SemCrude, L.P. for $45.0 million.
SemCrude is a subsidiary of privately owned SemGroup, L.P. The pipeline previously was part of Explorer Pipeline’s 8” Product System that originates in Arlington, Texas.
The acquisition was funded with borrowings under SGLP’s existing revolving credit facility.
SGLP expects to invest up to an additional $3.5 million to convert the pipeline to a crude oil pipeline and to construct a 10-mile, 6-inch pipeline from Drumright to Cushing.