ARM Energy, HPS Investment announce expansion of Kingfisher Midstream

HOUSTON -- ARM Energy, a wholly owned subsidiary of Asset Risk Management, and HPS Investment Partners, LLC, a leading global investment firm, announced that Kingfisher Midstream, a natural gas gathering and processing system and crude oil gathering system in Oklahoma's STACK play, is expanding from its original footprint in Kingfisher County into Blaine and Major counties.

KFM also has secured incremental residue gas takeaway to markets outside the state of Oklahoma. In recent months, the increased drilling activity in the STACK and SCOOP regions have caused residue gas takeaway markets to tighten significantly.

Kingfisher Midstream is now backed by long-term acreage commitments from six producers in the STACK. Beginning in Q2 2017, the project will have 260,000 MCFD of processing capacity at the Lincoln Plant site, all of which is matched by firm residue gas transportation to downstream markets.

"Our team and partners are excited with the continued progress and advancement of KFM's midstream operations in Kingfisher," said Zach Lee, Chief Executive Officer, ARM. "ARM's and HPS' vision for the project continues to develop as more and more producers connect to the system and seek a first-rate gathering and processing system. The residue capacity secured by KFM ensures that our producers will be well positioned to grow their production as STACK development continues."

"ARM has been a great operating partner, strategically securing takeaway capacity, expanding the gathering footprint and connecting third party producers," said Don Dimitrievich, a Managing Director at HPS. "We are excited to be a part of KFM's continued growth and expansion efforts, which reflect HPS' continued support for the project as well as our focus on investing in midstream assets in top-tier basins, such as the STACK."

KFM includes a natural gas gathering and processing system as well as a crude gathering system. Construction on the system began in September 2015 and commercial operations started in June 2016.

The Western Expansion will add an additional 50 miles of high pressure and low pressure gathering pipeline to the existing system, which already includes more than 250 miles of high- and low-pressure gas gathering pipeline, more than 100 miles of crude gathering, six crude oil truck loading stations, a 50,000 bbl crude storage facility and condensate stabilization systems.

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