CenterPoint Energy Field Services division signs long-term agreement with XTO Energy to gather crude oil production in North Dakota's Bakken shale With agreement, CenterPoint Energy unit will diversify product gathering capability and expand outside footprint into liquids-rich area
HOUSTON, April 9, 2013 /PRNewswire/ -- CenterPoint Energy Bakken Crude Services, LLC (CEBCS), an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), announced it has entered into a long-term agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation (NYSE: XOM), to gather XTO's crude oil production through a new crude oil gathering and transportation pipeline system in North Dakota's liquids-rich Bakken shale. The agreement with XTO is the first agreement entered into pursuant to the open season announced by CEBCS on February 19.
Under the terms of this new agreement, which includes volume commitments, CEBCS will provide service to XTO over a gathering system to be constructed in Dunn and McKenzie counties, North Dakota. The gathering system will have a capacity of up to 19,500 barrels per day.
"We are extremely pleased to provide long-term crude oil gathering services for such an outstanding producer, and we appreciate the confidence they have placed in our current and expanding capabilities," said C. Gregory Harper, senior vice president and group president of CenterPoint Energy's Midstream business. "Our excellent track record of developing gathering systems on time and on budget continues to provide us with opportunities, and positions us to execute our strategy of expanding into liquids-rich basins."
"This agreement presents significant growth opportunities," added Scott Prochazka, executive vice president and chief operating officer of CenterPoint Energy. "It leverages our core competencies while allowing us to diversify our product gathering capabilities and geographic footprint."
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. Assets total more than $22 billion. With over 8,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the company's website at CenterPointEnergy.com.
This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future events and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the financial performance of CenterPoint Energy, the timing and impact of future regulatory decisions, and other factors discussed in CenterPoint Energy's Form 10-K for the period ended Dec. 31, 2012, and other filings with the Securities and Exchange Commission.
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SOURCE CenterPoint Energy, Inc.