Concho Resources, Frontier Midstream form JV, Beta Crude Connector

HOUSTON -- Concho Resources Inc. and Frontier Midstream Solutions IV, LLC  announced the formation of Beta Crude Connector, LLC (BCC), a midstream joint venture to build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin. Concho and Frontier will each own a 50% equity interest in BCC, with Frontier serving as operator. In conjunction with the joint venture agreement, Concho has agreed to enter into a long-term acreage dedication agreement with BCC.

The new gathering and transportation system will consist of an approximately 100-mi gathering system, 250,000 bbl of crude oil storage facilities as well as truck terminals. The pipeline system will have the initial capacity to deliver 150,000 bopd of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.

Concho is one of the largest unconventional shale producers in the Permian Basin, with operations focused on acquiring, exploring, developing and producing oil and natural gas resources. Concho is at the forefront of applying advanced technology and large-scale development to safely and efficiently maximize resource recovery while delivering attractive, long-term economic returns.

Frontier, headquartered in Tulsa, Okla., is owned by Frontier Energy Partners II, LLC and certain funds of Energy Spectrum Capital. The company is a full-service midstream company focused on the development of new midstream crude oil and natural gas infrastructure in the Permian Basin and other basins throughout the lower 48 states.