Bayou Midstream II Buys 85 Miles of Bakken Gas Pipelines

Bayou Midstream II has closed its acquisition of Argent Gas Solutions, adding roughly 85 miles of natural gas gathering pipelines and more than 60 million standard cubic feet per day of processing capacity in North Dakota's Bakken region. The buyer, a Houston-based energy infrastructure company backed by EIV Capital, purchased the system from Silver Hill Energy Partners. Terms weren't disclosed.

The acquired assets span Williams, Burke, and Mountrail counties in northeastern North Dakota, serving natural gas producers across that corner of the Bakken. Approximately 140,000 acres are dedicated to the system, giving Bayou a producing footprint from day one rather than a greenfield build.

The deal also marks a homecoming. Bayou previously developed, owned, and operated pipelines and related infrastructure in McKenzie County, North Dakota, and Richland County, Montana. The Argent purchase returns the company to the basin it knows.

What did the buyers and seller say?

Travis Roby, CEO of Bayou Midstream II, kept the strategy blunt: "We are delighted to be acquiring AGS and look forward to expanding the system and providing safe, reliable gas gathering and processing services to the area producers. The northeastern Bakken offers significant development opportunities where our goal is to be the midstream provider of choice for producers developing this area. Our extensive midstream experience in the Bakken positions us well to support their growth."

The transaction extends an eight-year relationship. EIV Capital, a Houston private equity firm founded in 2009, has backed the management team's energy infrastructure investments across two partnerships. Max Harris, Managing Director of EIV Capital, said: "We are excited to continue our partnership with Bayou through the AGS acquisition, which marks Bayou's return to the Bakken following a successful initial partnership between Bayou and EIV Capital. We believe the team's customer-focus and experience building and operating in the basin uniquely positions them to steer AGS through its next phase of growth."

How did Silver Hill build the asset?

The seller's story is one of a fast turnaround. Silver Hill acquired the Argent system in March 2024 as part of its entry into the Bakken, when the asset was a single-producer infrastructure business. The firm then converted it into a third-party midstream operation serving both its own production and nearby operators.

Kyle Miller, Founder and CEO of Silver Hill Energy Partners, said: "The AGS system was a small, single-producer asset when we acquired it with our Bakken entry in March 2024. Since then, we have grown it into a true third-party midstream business that services both our own volumes as well as a growing production base from neighboring operators. We are proud of what we have built and are confident the Bayou team is well-positioned to take it to the next level as development in the northeastern Bakken continues to accelerate."

Founded in 2011, Silver Hill has raised approximately $4.2 billion in institutional equity capital across five partnerships. Its investments have spanned operated oil and gas assets and infrastructure businesses across major U.S. production regions. Following the Argent sale and other portfolio transactions, the firm still operates substantial assets in the Bakken and Eagle Ford.

What happens next?

Bayou plans to use the existing system as a platform for growth, expanding gathering and processing services as production activity develops across the northeastern Bakken. EIV Capital invests across the North American energy industry, pairing financial capital with operating and engineering expertise, and develops infrastructure businesses alongside acquiring non-operated oil and gas interests.

The bet is straightforward: producers in the northeastern Bakken keep drilling, and Bayou wants to be the midstream provider of choice as those volumes grow.