Howard Energy Partners (HEP) has solidified its presence in the prolific Anadarko Basin with the acquisition of equity interests in the 200-mile Midship Pipeline from a subsidiary of Cheniere Energy, Inc. The deal was finalized on February 13 and HEP will assume operatorship of the FERC-regulated pipeline soon.

The Midship Pipeline, a critical artery in the SCOOP and STACK plays of Oklahoma, stretches from Kingfisher County to Bennington, connecting burgeoning production to high-demand markets along the Gulf Coast and Southeast. Its strategic interconnects provide access to multiple downstream pipelines, offering producers diverse transportation options. With a current capacity of 1.1 billion cubic feet per day (Bcf/d), the pipeline is poised to accommodate future growth, boasting an expandable capacity of up to 1.4 Bcf/d. This expansion capability positions HEP to capitalize on anticipated increases in natural gas production from the region.

The Midship Pipeline acquisition caps off a record-breaking year for HEP, with over $1.1 billion in mergers and acquisitions completed in 2024. This aggressive growth strategy demonstrates HEP's confidence in the long-term viability of natural gas as a crucial energy source and its commitment to investing in infrastructure that facilitates its transportation and delivery. The company’s diversified portfolio, spanning the natural gas and liquids value chain, positions it as a key player in the midstream sector.

Mike Howard, Chairman and CEO of Howard Energy Partners, expressed enthusiasm about the acquisition, stating, "We are excited about acquiring an interest in Midship, further expanding our footprint in the SCOOP/STACK plays in the Anadarko Basin. We have operated natural gas gathering pipelines in Oklahoma for years, and this acquisition is consistent with our strategy of scaling and integrating assets in basins that support long-term natural gas demand."

HEP's expertise in operating natural gas gathering pipelines in Oklahoma makes the Midship Pipeline a natural fit within its existing asset base. The integration of Midship into HEP's network will create synergistic opportunities and enhance the company's ability to serve producers in the region. By assuming operatorship, HEP gains greater control over the pipeline's operations and can ensure its efficient and reliable performance.

The SCOOP and STACK plays have emerged as significant contributors to U.S. natural gas production, and the Midship Pipeline plays a vital role in connecting this supply to markets. HEP's acquisition of an interest in the pipeline strengthens its position in this vital region and reinforces its commitment to supporting the continued development of these resources.