Ares EIF Group To Buy Van Hook Gathering System From WPX Energy For $185 Mln

(RTTNews) - Ares Management, L.P. (ARES) said that a private equity fund managed by its Ares EIF Group has agreed to acquire the Van Hook Gathering System in North Dakota from WPX Energy, Inc. (WPX) for about $185 million. The transaction is expected to close during the fourth quarter.

Ares Management noted that the acquisition consists of pipeline systems that currently gather about 11,000 barrels of oil, 6,500 million cubic feet of natural gas, and 5,000 barrels of water per day from WPX Energy's Bakken shale oil assets. WPX Energy will continue to operate the Van Hook Gathering System.

In a separate statement, WPX Energy noted that the sale is part of its delevering plan targeting $400 million to $500 million in divestitures by the end of 2015. The company is targeting another $400 million to $500 million in asset sales in 2016.