Bayou Midstream II has closed its acquisition of Argent Gas Solutions, adding approximately 85 miles of northeastern Bakken gathering pipeline, associated compression, more than 60 MMscf/d of processing capacity and about 140,000 dedicated acres in North Dakota; the parties did not disclose the purchase price.
Published by Allstream Insiders
Allstream Insiders Summary
Bayou Midstream II, LLC has closed its acquisition of Argent Gas Solutions, LLC, a natural-gas gathering, compression and processing business in North Dakota’s northeastern Bakken. According to Bayou Midstream II’s November 9 announcement, Argent Gas Solutions, or AGS, was acquired from Silver Hill Energy Partners, LP, with EIV Capital participating alongside Bayou.
The acquired system serves producers in Williams, Burke and Mountrail counties and includes approximately 85 miles of gathering pipelines, associated natural-gas compression, more than 60 MMscf/d of processing capacity and approximately 140,000 dedicated acres.
The companies did not disclose the transaction’s purchase price, consideration or other financial terms. The acquisition is complete, but the announcement does not identify a capital budget, a defined system-expansion project, a construction timetable or contractor and equipment awards.
Argent Gas Solutions System at a Glance
| Item | Company-reported detail |
|---|---|
| Buyer | Bayou Midstream II, LLC, with EIV Capital |
| Seller | Silver Hill Energy Partners, LP, through its Argent Gas Solutions subsidiary |
| Transaction status | Closed |
| Geography | Williams, Burke and Mountrail counties, North Dakota |
| Gathering infrastructure | Approximately 85 miles of pipeline, with associated natural-gas compression |
| Processing capacity | More than 60 MMscf/d |
| Dedicated acreage | Approximately 140,000 acres |
| Purchase price | Not disclosed |
What Bayou Midstream II acquired
The disclosed acquisition is a package of existing midstream assets rather than an announcement of a new greenfield system. Bayou said AGS owns and operates gathering, compression and processing infrastructure serving producers in the northeastern Bakken.
The company specifically identified approximately 85 miles of gathering pipeline and associated compression assets, processing capability exceeding 60 MMscf/d and 140,000 dedicated acres. The announcement does not break the system into individual pipeline segments, compressor stations, processing facilities or producer contracts, and it does not disclose system throughput, utilization or the condition of the assets.
What the transaction does—and does not—disclose
Bayou described the acquisition as a return to North Dakota and a platform for future growth with producer partners. Silver Hill said the system began as a small, single-producer asset when it entered the Bakken in March 2024 and subsequently grew into a third-party business serving its own and neighboring producer volumes.
Those statements indicate a growth objective, but neither company announced a specific expansion scope. The release does not disclose an expansion budget, incremental pipeline mileage, new compression or processing capacity, expected in-service date, producer commitment, permitting milestone or project-level engineering and construction award.
Transaction price was not announced
No acquisition value was included in the November 9 announcement. The physical assets and capacity figures provide a defined description of the acquired system, but they should not be used to estimate the purchase price. Likewise, the 140,000 dedicated acres are a description of the system’s contracted acreage position, not a disclosed asset valuation or capital-spending commitment.
Allstream perspective: an existing Bakken platform with potential future service scope
Allstream perspective: The immediate news is ownership of an operating northeastern Bakken gathering, compression and processing platform. If Bayou later advances the expansion opportunity it described, potential work categories could include engineering and design; gathering line pipe and related fittings; compressor packages and associated drivers; process, measurement and control equipment; valves; electrical and automation work; civil construction; fabrication and welding; coating, inspection and testing; and construction-support services.
Those are possible categories for a future buildout, not announced awards. The acquisition release identifies no contractor, supplier, procurement package, capital budget or construction schedule. The next commercial milestones to watch are producer commitments, a defined expansion plan, permitting or regulatory filings, capacity additions and project-specific contracting disclosures.
