A Denver-area private oil and gas transportation and storage company is doubling in size and entering Texas’ booming Permian Basin following its latest deal.
And this deal isn’t going to be the last one, said Chris Helms, the president and CEO of Rocky Mountain Crude Oil LLC, which goes by RMCO.
“We’re not done. We want to go large or go home,” Helms told the Denver Business Journal.
The Greenwood Village, Colorado-based company said April 2 it’s acquired all the membership interests and assumed full operational control of Denver-based Concord Energy Transportation LLC and its assets.
Terms of the deal between the two private companies were not disclosed.
“This is a big deal for us; we’ve been under the radar,” Helms said.
Chris Helms Rocky Mountain Crude Oil CEO and president
After the deal closes, RMCO will be capable of moving between 55,000 and 65,000 barrels of oil per day, said Bill Dickey, RMCO’s COO and CFO, in a statement.
Prior to the deal, RMCO average the transport of 34,000 barrels of oil per day, Helms told the DBJ.
RMCO started in 2016 when Houston’s Enterprise Enterprise Products Partners LP (NYSE: EPD), an energy pipeline and transportation company, sold its Rocky Mountain operation in Colorado, Wyoming, North Dakota and Montana to Mercuria Energy, one of the world’s largest independent and integrated energy and commodities groups. RMCO was started to transport and store crude oil for the clients who had contracts with Enterprise and then Mercuria, which also has a Houston office.
“Rocky Mountain Crude Oil bought the physical logistics of trucks, [storage] terminals and [pipeline] injection points. We manage the logistics for Mercuria’s book of business,” said Helms, who counts 40 years of experience in the midstream sector.
His partner Bill Dickey, RMCO’s COO and CFO, has 33 years of experience in the sector, including stints as president and COO of Denver’s TransMontaigne Partners and Golden’s Meritage Midstream.
Bill Dickey, Rocky Mountain Crude Oil’s COO and CFO
Helms said the deal’s been in the works for a couple of months and offered RMCO a chance to grow — and get into West Texas’ Permian Basin, one of the biggest oil and gas booms now underway in the United States.
The Permian was the site of a massive $9.5 billion deal announced last week between two Texas companies, with Midland oil and gas company Concho Resources buying Dallas producer RSP Permian.
“We didn’t have a presence in the Permian Basin in West Texas, and this [deal with Concord] gives us an operating terminal with drivers and equipment in Pecos, Texas,” Helms said.
“That’s a big deal for us. We’re now in every one of the major onshore oil basins,” he said.
Helms said he’s never seen a boom like the one underway in West Texas.
“I’ve been in the business a long time and I’ve bee to the Permian and Pecos twice in the last month. I’ve been around a lot of booms and I’ve never quite seen anything like it,” he said.
“In the 70 miles between Pecos [Texas] and New Mexico, there isn’t a mile where you can’t look at the horizon and see a drilling rig or a completion crew or water disposal going on. It’s absolutely unbelievable.”
RMCO will continue to use Concord’s name and logo during a transition period.
Rocky Mountain Crude Oil trucks
Commercial operations, dispatch and business development functions have been consolidated into RMCO’s Greenwood Village offices. Concord’s field operations in North Dakota will be consolidated with RMCO’s existing Watford City terminal, the company said.
In addition to the Permian, RMCO operates in Colorado’s Denver-Julesburg Basin, where it operates a storage terminal in Nunn, Wyoming’s Powder River Basin, and the Bakken in Montana and North Dakota.
All told, the company transports and stores crude oil in eight states with a fleet of 121 crude oil tractors and trucks, 134 trailers, nine owned or leased pipeline injection stations and five terminals.
With 46 Concord employees joining RMCO, the company now employs 145 people. Of those, 30 people work out of the Greenwood Village office and another 25 people work at the storage terminal in Nunn, Colorado.
And RMCO’s growth mode isn’t over, Helms said.
The company wants to hire another 24 to 30 drivers — people who have experience driving hazardous materials and driving tankers.
And more deals are likely as the sector undergoes a consolidation, Helms said.
“We’re getting phone calls if not daily then its every day from people asking if we’re interested in talking,” he said.
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