Ferrellgas Partners has acquired two salt-water wells in Texas which will expand its midstream business.
The Overland Park company, best known as a propane retailer, purchased the two wells from C&E Production. The wells, in the Eagle Ford shale play, are needed for fracking, the form of drilling used to recover crude oil and natural gas in rock formations. The deal includes an option to purchase another salt-water well in the future.
The purchase price wasn’t disclosed, but Ferrellgas said it was raising $42 million to pay for the acquisition and others in the future.