The Money Backers:  EIV Capital

The Money Backers: EIV Capital

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.

Houston-based EIV Capital hedges its investment bets on energy startups with a solid track record of successfully managing previous ventures during industry upturns and downturns. This small private-equity firm focuses predominantly on players in the midstream sector with investments between $20-$80 million.

EIV Capital

EIV Capital is a private equity firm based in Houston, Texas, specializing in the energy industry.  EIV focuses on the midstream and downstream segments of the market. EIV Capital is an investor-centric private equity firm, with diverse team experience. We provide valuable, practical solutions and advice based on our operational and financial experience and aim to be a true partner to all stakeholders.

www.eivcapital.com

Here’s a look at EIV’s current midstream portfolio:

  • Based in Dallas, Canes Midstream is EIV’s most recent newcomer. Formed in late 2019, Canes looks to acquire oil and gas infrastructure and develop greenfield midstream projects in high-performing basins.
  • Formed in April 2019, Ga.-based Summit Terminaling has its eye on constructing and operating bulk liquid terminal storage in underserved areas across the U.S.
  • EIV Capital also birthed Woodland Midstream II in 2019. Calling The Woodlands, Texas, home, this second iteration targets opportunities in the Permian and Arkoma basins and the Western Gulf Coast and ARK-LA-TEX areas. The company acquired last October the James Lake System, which serves producers in the Permian. Assets include a fully integrated sour gas gathering, treating, and processing system with 230 miles of pipeline, 110 MMCFD of processing capacity, and 35,000 HP of owned compression.
  • With initial funding of $75 million in 2018, Houston-based Bayou Midstream operates a crude oil gathering system in the Bakken with a strategy to build or acquire additional assets in both the Williston and Powder River basins.
  • Back in 2016, EIV committed $100 million in equity financing to Houston-based startup H2O Midstream. One year later, H2O acquired Encana’s produced water infrastructure in the Permian with assets that included more than 100 miles of interconnected pipelines and five saltwater disposal wells with 80,000 BPD of disposal capacity. H2O in 2019 then picked up Sabalo Energy’s water system, which was already connected to Ecana’s, bringing combined disposal capacity in the Midland and Delaware to 560,000 BPD. EIV has since increased its financial backing to enable H2O Midstream’s further growth in the Permian, where the company owns and operates the first third-party, truckless produced water hub.

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Black Bear Discovers a Honey Pot

Black Bear Discovers a Honey Pot

Consolidation in the midstream space continues this week with the latest news from Houston-based Black Bear Transmission, which will acquire Ozark Gas Transmission (OGT) and Ozark Gas Gathering (OGG) from a subsidiary of Canada-based Enbridge. If you’re keeping count, that’s four name drops in one sentence but hang with us as we peel back the layers.

Basalt Infrastructure Partners

Basalt I and Basalt II are two of the flagship Basalt Infrastructure Partner funds. They are infrastructure equity investment funds focusing on investments in utilities, power, transport, and communications infrastructure in North America and Europe. Other investments by the Basalt funds in North America include the Upper Peninsula Power Company, Texas Microgrid, DB Energy Partners, Detroit Thermal, Hyperion and Helios Power.

www.basaltinfra.com

Enbridge Energy

Enbridge Inc. is a Canadian multinational energy transportation company based in Calgary, Alberta. It focuses on the transportation, distribution and generation of energy, primarily in North America.

www.enbridge.com

Last December, N.Y.-based private equity firm Basalt Infrastructure Partners acquired Third Coast Midstream’s natural gas transmission business, which included seven natural gas pipelines stretching 550 miles with connections to eight major long-haul pipelines across La., Ala., Miss., Tenn., and Ark. Basalt rebranded its newest portfolio company Black Bear, and set off to explore opportunities to expand both the midstreamer’s asset base and utility and industrial customers in the Southeast.

With the close of its acquisition of OGT and OGG, Black Bear has found what amounts to a honey of an opportunity. OGT’s assets include a 367-mile interstate gas transportation system that extends from southeastern Okla., through Ark., and into southeastern Mo. OGG is a 330-mile gathering system, which sources gas from the Fayetteville Shale and Arkoma Basin that feeds into the OGT line. OGT also offers multiple connections that include Enbridge’s Texas Eastern Transmission System, Centerpoint’s Mississippi River Transmission, Boardwalk’s Texas Gas pipeline, and Kinder-Morgan’s NGPL.

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And the Winner Is…

And the Winner Is…

Doug Dorner stepped inside Dallas’s famed Petroleum Club late last month to a crowd of oil and gas executives offering up congratulations and hearty handshakes. The night’s event, hosted by the city’s D Magazine, gathered finalists for its second annual Oil and Gas Awards honoring the state’s best-of-the-best energy leaders. In a few short hours, Dorner humbly accepted the award for Midstream CEO of the Year.

Cardinal Midstream

Founded in 2008 and headquartered in Dallas, Cardinal is a midstream company focused on providing our customers with exceptional service. With a highly experienced team and a successful operational track record, Cardinal has established a solid platform that is well positioned for growth.

www.cardinalmidstream.com

As co-founder, chairman and CEO of Dallas-based Cardinal Midstream, Donor has led several iterations of his company over the years to applause-worthy success. In 2012, Cardinal ranked as the largest gas processor in Oklahoma’s Arkoma Woodford Shale, with three cryogenic plants, a fourth under construction, 66 miles of pipelines, a treating facility, 56,000 hp of compression, dehydration facilities, and 17 skid-mounted gas treating plants. Cardinal would go on to sell these assets to Atlas Pipeline Partners for $600 million. Atlas would later be acquired by Tulsa-based Targa for $4 billion.

Today, Cardinal Midstream operates the Iron Horse Gathering and Processing system serving producers in Oklahoma’s SCOOP, STACK and Merge plays. The 100-acre system currently consists of more than 200 miles of high- and low-pressure natural gas pipelines, multiple compressor stations, and a processing plant with operational capacity of 200 MMCFPD. Expansions lie on the horizon.

But Dorner isn’t taking his award and going home any time soon. There are more gas and crude midstream systems to build and operate, and Cardinal Midstream is one bird that can fly.

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