American Midstream Partners announced a strong first quarter and revealed they are in process and on budget to finish a new Bakken oil gathering system by the second quarter of 2015.
Related: New Bakken Crude Oil Gathering System
In a press release this week, American Midstream Partners reported increases of nearly 50% over the prior year quarter, with gross margin of $33.8 million and adjusted EBITDA of $15.6 million.
The company’s forecasted growth capital expenditures includes construction of the Bakken crude oil gathering system that consists of a 39-mile pipeline with the capacity to transport up to 40,000 Bbls/d crude oil. This pipeline will serve to provide producers in North Dakota with access to refinery, rail, and pipeline markets.
“Steve Bergstrom, Executive Chairman, President & CEO said “Commissioning of the fee-based Bakken crude gathering system is underway with startup expected by the end of the second quarter. The project has remained on track despite weather challenges slowing the construction process. We’re in advanced negotiations with several producers to add meaningful truck volumes to the system which will provide producers with access to premium refinery, pipeline and rail markets. Throughput volumes are expected to ramp up to 20,000 barrels per day in the second half of the year.”
Read more at americanmidstream.com