Apache Midstream and ARM Energy Holdings Announce Development of Salt Creek MidstreamÔÇÖs SCM Alpine, LLC

Apache Midstream Signs Option for 50% Stake in 445,000 Bbl/d NGL
Header System

ARM to Construct, Manage, Operate and Own an Interest in the
Transportation System

Salt Creek Midstream and SCM Alpine Backed by Ares ManagementÔÇÖs
Private Equity Group

HOUSTON–(BUSINESS WIRE)–Apache Midstream (ÔÇ£ApacheÔÇØ), a subsidiary of Apache Corporation (NYSE,
NASDAQ: APA) and ARM Energy Holdings (ÔÇ£ARM EnergyÔÇØ) today announced that
ARM EnergyÔÇÖs affiliate, Salt Creek Midstream, LLC (ÔÇ£Salt CreekÔÇØ) is
developing SCM Alpine, LLC (ÔÇ£AlpineÔÇØ), a 445,000 Bbl/d capacity natural
gas liquids (NGL) header system, and that Apache Midstream has signed an
option to acquire a 50% stake in Alpine.

Construction has commenced, and the project is expected to be
operational in Q1 2019. ARM Midstream Management, LLC, an affiliate of
ARM Energy, will construct, manage and operate the system. The $100
million project is supported by 10-year commitments from both Salt Creek
and Apache Corporation. The term of the commitments may be automatically
extended twice for an additional five years for a potential term of 20

The Alpine header system will be comprised of two pipeline segments that
originate at both the Salt Creek and Apache processing facilities in
southern Reeves County, Texas. The pipeline will provide flexibility by
transporting the NGLs to Waha, where it will have the ability to
interconnect to downstream pipelines providing access to Mont Belvieu
and Corpus Christi fractionation facilities.

ARM EnergyÔÇÖs CEO Zach Lee said, ÔÇ£We are pleased to join Apache in
announcing this project. This announcement signifies Salt CreekÔÇÖs
extensive relationships in the Delaware Basin and our expanding
world-class asset-base. We have a deep understanding of the fundamentals
driving upstream and midstream economics and their impact on the gulf
coast downstream markets. We believe Alpine is well-positioned to
provide market optionality leading to netback advantages for its
customer base.ÔÇØ

Apache CorporationÔÇÖs Senior Vice President, Midstream and Marketing,
Brian Freed, said, ÔÇ£The development of this NGL project is another
significant step in ApacheÔÇÖs Alpine High infrastructure buildout. This
project provides Apache access to the emerging Waha market area,
increasing the companyÔÇÖs long-term operational flexibility and market

In April 2018, ARM Energy announced a strategic partnership with Ares
Management, L.P. (ÔÇ£AresÔÇØ) to develop Salt Creek in the Delaware Basin.
Salt Creek and Alpine are both owned by funds managed by the Ares
Private Equity Group and ARM Energy.

Locke Lorde LLP provided legal representation to ARM Energy/Salt Creek
and Bracewell LLC represented Apache.

About Salt Creek Midstream, LLC

Formed in 2017, Houston-headquartered Salt Creek Midstream, LLC is a
joint venture of ARM Energy Holdings LLC and funds managed by Ares
Management, L.P. Salt Creek is a full service midstream provider,
offering gas and crude gathering, compression, cryogenic processing and
treating services. The greenfield development project spans more than
250,000 acres across Culberson, Reeves, Ward, Winkler, Lea, Pecos, and
Eddy Counties within the Delaware Basin.

About Apache

Apache Corporation is an oil and gas exploration and production company
with operations in the United States, Egypt and the United Kingdom.
Apache posts announcements, operational updates, investor information
and copies of all press releases on its website, www.apachecorp.com,
and on its Media and Investor Center mobile application, which is
available for free download from the Apple App Store and the Google Play

About ARM Energy Holdings, LLC

Headquartered in Houston, with offices in Calgary, Denver, Midland, and
Pittsburgh, ARM Energy is a premier producer services firm, active in
every sector of the energy value chain across all major North American
oil and gas basins. Its integrated, diversified portfolio includes Asset
Risk Management, LLC, providing risk management and hedging strategies
for producers; ARM Energy Management LLC, providing physical oil and gas
marketing, transportation and asset management services and trading; and
ARM Midstream, LLC, providing midstream investment, infrastructure
development and operations. www.armenergy.com.

About Ares Management, L.P.

Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $112.5 billion of assets under
management as of March 31, 2018 and 18 offices in the United States,
Europe, Asia and Australia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.


Castlen Kennedy, 713-296-7189
[email protected]
Energy/Salt Creek
Sard Verbinnen & Co
Kelly Kimberly,
[email protected]
Frankle, 415-618-8750
[email protected]