Ares acquires Paradigm to bolster Bakken midstream assets

By Luke Geiver | September 06, 2018

Ares Management LP believes its acquisition of Paradigm Energy Partners will make the company a premier regional Williston Basin midstream service. The buyout of Paradigm’s Bakken assets includes two oil and natural gas gathering systems in North Dakota. Terms of the deal were not disclosed. 

“The Paradigm management team has done a tremendous job over the past four years developing and building a basin-changing midstream platform,” said Scott Parkes, principal with Ares EIF. “We are delighted to have this opportunity to support this team as they transition from initial build-out to long-term growth.”

In 2015, Ares purchased the Van Hook Gathering System in the North Dakota portion of the Williston Basin from WPX Energy for roughly $185 million. The pipeline system at the time included takeaway and gathering capacity of 11,000 barrels of oil per day, 6,500 million cubic feet of natural gas and 5,000 barrels of water per day.

In addition to the two Bakken assets, the acquisition of Paradigm’s assets will give Ares an oil and natural gas gathering system in the Eagle Ford and joint venture interests in the yet-to-be-developed Sacagawea Pipeline Co.

Paradigm’s management team will continue to operate the assets under the same name.