Playbooks Supplements

Unconventional Yearbook 2018

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Page 90 of 107 | January 2018 | 89 MIDSTREAM | 2018 UNCONVENTIONAL YEARBOOK D uring the boom days of the shale bonanza, midstream operators and even investors were scrambling to keep pace. Once the crash came at the end of 2014, the midstream was able to catch its breath, but found that money was tight even to finish projects underway. The theme for 2018 could be "Return of the Jedi" as modest increases in pro- duction keep bubbling out everywhere. The Permian is productive as ever, and the current hot plays in the Midcontinent are newly productive. But old friends such as the Haynesville and the Bakken need new gathering, processing and transportation. There is often talk about the realignment of the North American midstream as a result of the shale bonanza but Enable Midstream Partners recently took that to a literal level when it closed its $300-million acquisition of Align Midstream in October 2017. Align had gas gathering and processing facilities in the Cotton Valley and Haynesville plays of the Ark-La-Tex Basin. The Align acquisition included about 190 miles of gathering pipelines across Rusk, Panola and Shelby counties in Texas and DeSoto Parish in Louisiana, as well as a cryogenic natural gas processing plant in Panola, Texas, with a capac- ity of 100 MMcf/d. These assets are underpinned with long-term, fee-based contracts, including approximately 100,000 gross acres of dedication from producer customers. Enable owns, operates and develops gas and crude infrastructure, including more than 13,000 miles of gathering lines, 2.6 Bcf/d of processing capacity and an extensive 7,800 miles of interstate pipelines. That includes the Southeast Supply Header, of which Enable owns half. The portfolio also includes about 2,200 miles of intrastate pipe and eight storage facil- ities comprising 85 Bcf of capacity. "We have been around M&A for a while and have always tried to be smart," said Craig Harris, chief commercial officer, Enable Midstream. "The Align 190 miles of pipe and 100-million-cubic-foot-per- day plant in the Haynesville/Cotton Valley area is actually a good alignment with our existing plant and NGL infrastructure in the area. We are very pleased with the integration." When producers or midstream operators men- tion the hot basins around North America the Haynesville is not usually among them. Indeed there was a time not so long ago when the play was the poster child for dry gas as in "Well, at that price per mcf even the Haynesville is profitable." While no one is ready to declare the Haynesville the next Permian, Harris said "we are seeing a lot of activity in that play and in the Cotton Valley. Wells continue to improve across the footprint. It is an advantage to be so close to the major LNG export ter- minals, but the well profiles all by themselves are very encouraging. There is a great deal of positive momen- tum in the area—a good mix of wet and dry. We are actually seeing a fair amount of rich-gas drilling." Stacking the deck Enable has several projects in various stages of development, but two major projects coming online in 2018 are the Wildcat and the Cana and Stack Expansion (CaSE) projects in the Anadarko Staying Current with Modest Growth in Shale Production Even with the clamps on capex, production creeps higher; pipelines and processing are keeping pace. By Gregory DL Morris, Contributing Editor

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