In RMR’s continuing series The Money Backers, we give readers a glimpse of who’s who and who owns what in energy’s private equity world. From the largest to the smallest to the newest, we look especially at those firms making hay in the midstream industry to provide the capital infusion required to give growth projects liftoff.

First Reserve

First Reserve Corporation is a private equity firm specializing in leveraged buyouts and growth capital investments in the energy sector. First Reserve was founded in 1984 and is the oldest and largest private equity fund dedicated to investments in the energy sector.

With offices in Ct., London and Houston, First Reserve has held fast to its exclusive focus on energy infrastructure investments for more than 35 years. Since its inception, this private-equity firm has raised $32+ billion using a “buy and build” model, and currently holds 40 portfolio companies that sweep the upstream, midstream and downstream oil and gas sectors, as well as related equipment suppliers and service providers.

On the midstream side, First Reserve has firmly dug its boot heels in the nation’s busiest oil and gas basins, with four energy infrastructure investments that regularly find themselves in headlines exercising the firm’s capital-backed “build” model.

  • First up, Blue Racer Midstream. With more than 700 miles of natural gas-gathering, NGL and condensate pipe, and two processing complexes with more than 1 BCFD of nameplate capacity, Blue Racer is a force to be reckoned with in the Marcellus and Utica basins.
  • Crestwood Permian’s largest system is actually situated in the Bakken, with 702 miles of crude oil, natural gas, and water gathering pipelines, storage, rail loading, and a gas plant with 150 MMCFD of capacity. In the Barnett, Crestwood operates 507 miles of natural gas pipe and a processing facility with 425 MMCFD of capacity. This midstreamer also commands natural gas gathering and processing positions in the Marcellus, Powder River, and Permian.
  • Phillips 66 Partners operates 13 refineries that connect with its extensive crude oil, refined products and NGLs pipelines, terminals, rail loading and storage systems in La., Texas, and Okla. The company owns an equity interest in the Explorer Pipeline, which flows refined crude products from the Texas Gulf Coast to more than 70 major cities in 16 U.S. states. In a joint venture with Plains All American, Phillips also operates the STACK Pipeline, which transports crude oil from the Anadarko Basin to the Cushing, Okla., hub.
  • Last but certainly not least, Plains All American Pipeline. This midstreamer, one of the largest in the nation, operates 18,965 miles of crude oil and NGL pipelines, 148 million barrels of storage, 50 barges and 20 transport tugs, 8,000 crude oil and NGL rail cars, and 2,485 trucks and trailers.

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