Blackstone Energy Partners to Acquire EagleClaw Midstream Ventures
April 17 2017 - 8:15AM
Business Wire
EagleClaw Midstream Ventures, LLC (“EagleClaw”) and its
financial sponsor, EnCap Flatrock Midstream, announced today that
they have entered into a binding agreement to sell the company to
funds managed by Blackstone Energy Partners and Blackstone Capital
Partners for approximately $2 billion. Blackstone Energy Partners
is the energy-focused private equity business of Blackstone (NYSE:
BX). The all-cash transaction is expected to close by the end of
July 2017 and includes approximately $1.25 billion in stapled debt
financing provided by Jefferies LLC.
EagleClaw is the largest privately held midstream operator in
the Permian’s Delaware Basin in West Texas. The company’s assets
are strategically located in Reeves, Ward and Culberson counties
and include more than 375 miles of natural gas gathering pipelines
and 320 million cubic feet per day (MMcf/d) of processing capacity
with an additional 400 MMcf/d under construction. EagleClaw serves
many of the region’s leading oil and gas producers, which have made
to the company long-term dedications of natural gas volumes from
more than 220,000 acres.
EagleClaw will retain its name and operate as a Blackstone
portfolio company. The leadership team and fundamentally all of the
company’s employees will remain in their current roles and are
investing alongside Blackstone in this transaction.
CEO Perspective
“This transaction is a very exciting moment in our advancing
growth story,” said EagleClaw President and CEO Bob Milam. “I am
extremely proud of our team and grateful for our outstanding,
five-year relationship with EnCap Flatrock Midstream. We are very
fortunate to have had such a great financial partner. EnCap
Flatrock brought consistent value to our strategic planning
process. They helped us navigate the opportunities and challenges
of our early years with growth capital, technical expertise,
decades of commercial experience and valuable contacts.
“As we begin a new chapter, we will continue to deliver the same
outstanding level of service our customers expect while we work
with Blackstone to deploy additional capital and to expand our
footprint in the Delaware Basin. Blackstone has a deep
understanding of the compelling fundamentals of the upstream and
midstream economics in the Permian, an outstanding reputation as an
investor in the energy sector and the scale to take EagleClaw to
the next level. We are proud to have their support and look forward
to a long and successful relationship.”
From EnCap Flatrock Midstream
“We are pleased to join EagleClaw in announcing this
realization,” said EnCap Flatrock Midstream Managing Partner and
Founder Bill Waldrip. “Bob Milam and his team are to be commended
for developing a world-class physical and contractual platform in
the most active basin in the country. The sale to Blackstone will
produce strong returns for our institutional investors and rewards
the EagleClaw team for many years of very hard work. We also
appreciate Blackstone’s interest and diligence in working with us
to reach an agreement that is beneficial for everyone at the table.
We are confident that Blackstone is the right partner to take
EagleClaw to the next level and look forward to watching its story
evolve.”
From Blackstone Energy Partners
“Our extensive experience over the past two decades as an
investor across all segments of the energy sector, access to
capital on a very large scale and firsthand knowledge of the
Permian as an owner of oil and gas producers in this region make
Blackstone uniquely well qualified to acquire EagleClaw and to
build upon the solid foundation started with the investment of Bill
Waldrip and the folks at EnCap Flatrock Midstream,” said David
Foley, Senior Managing Director of Blackstone and CEO of Blackstone
Energy Partners. “Bob Milam and his team have established excellent
relationships with the leading Permian-focused oil and gas
companies. We are pleased to partner with management to ensure
EagleClaw is well positioned to continue to serve the rapidly
growing future needs of its expanding customer base, creating
additional jobs for American workers and providing significant
benefits to the economy.”
Advisers
Jefferies LLC acted as EagleClaw’s exclusive financial adviser
in connection with the transaction and was the sole provider of the
committed debt financing. The Jefferies team was led by Co-Head of
Energy Investment Banking Peter Bowden. Blackstone was advised by
Trevor Heinzinger of Morgan Stanley & Co. LLC and Skip McGee of
Intrepid Partners LLC.
Frost Brown Todd LLC served as legal counsel to EagleClaw with
partner Edward W. Moore, Jr. in the lead role from the firm’s
Dallas office. Thompson & Knight LLP represented EnCap Flatrock
Midstream, with partner Sarah E. McLean in the lead role from the
firm’s Houston office. Blackstone was represented by Vinson &
Elkins LLP, whose team was led by partner Keith Fullenweider.
About EagleClaw Midstream, LLC
Headquartered in Midland, Texas, EagleClaw Midstream is a
midstream company focused on developing infrastructure
opportunities in the Permian Basin. EagleClaw provides natural gas
producers with a wide array of midstream services including
gathering, compression, treating, processing and transportation.
EagleClaw is led by President and CEO Bob Milam, Executive Vice
President and COO Curtis Clark, and Executive Vice President and
CCO Blake Bixler. Visit www.eagleclawmidstream.com for more
information.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to
proven management teams focused on midstream infrastructure
opportunities across North America. The firm was formed in 2008 by
a partnership between EnCap Investments L.P. and Flatrock Energy
Advisors. Based in San Antonio with offices in Oklahoma City and
Houston, EnCap Flatrock is led by Managing Partners and Founders
William D. Waldrip, Dennis F. Jaggi and William R. Lemmons, Jr.,
Managing Partners Gregory C. King and David J. Kurtz, and Partner
Dennis McCanless. The firm manages investment commitments of nearly
$6 billion from a broad group of prestigious institutional
investors. We are currently making commitments to new management
teams from EFM Fund III, a $3 billion fund. For more information
please visit www.efmidstream.com.
About Blackstone Energy Partners
Blackstone Energy Partners is Blackstone's energy-focused
private equity business, with a successful record built on our
industry expertise and partnerships with exceptional management
teams. Blackstone has invested over $12 billion of private equity
globally across a broad range of sectors within the energy
industry.
Blackstone is one of the world’s leading investment firms. We
seek to create positive economic impact and long-term value for our
investors, the companies in which we invest, and the communities in
which we work. We do this by using extraordinary people and
flexible capital to help companies solve problems. Our asset
management businesses, with over $360 billion in assets under
management, include investment vehicles focused on private equity,
real estate, public debt and equity, non-investment grade credit,
real assets and secondary funds, all on a global basis. Further
information is available at www.blackstone.com. Follow Blackstone
on Twitter @Blackstone.
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version on businesswire.com: http://www.businesswire.com/news/home/20170417005435/en/
For EagleClaw Midstream Ventures & EnCap Flatrock
Midstream:TEN|10 GroupCasey Nikoloric303-433-4397 x101 o |
303-507-0510 mManaging Principalcasey.nikoloric@ten10group.comorFor
Blackstone:Paula Chirhart212-583-5011 o | 347-446-6570 mSenior Vice
President, Global Public Affairspaula.chirhart@blackstone.com
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