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.
Cresta Fund Management
Cresta Fund Management is a middle-market focused private equity firm with a conservative, value-added approach to infrastructure investing. It seeks to invest in hard asset transportation, storage, and processing businesses primarily in the energy, chemicals and water sectors.
Dallas-based Cresta Fund Management likes good infrastructure ideas, whether they’re hatched from startups or companies that have been around awhile. This private-equity firm exclusively targets mid-market midstream investments with assets that include oil and gas pipelines, processing, and storage. And, at least for now, Cresta has found those investments squarely in Texas with typical check sizes that range between $50 and $250 million. Founded in 2016, the firm currently holds six midstreamers in its portfolio—one of which made headlines today with a new growth announcement.
- Houston-based Easton Energy says it will expand its NGLs and olefins storage at the underground salt dome caverns in Markham, Texas. The company holds exclusive rights to develop and lease certain caverns that will support a slate of fractionators and petrochemical plants coming online this year and beyond. Easton also looks to add crude storage at the site, where it has rights to 13 caverns and 50 MMBbls of storage. Easton in March 2019 acquired 415 miles of La., and Texas Gulf Coast NGLs pipelines from Williams for $177 million in cash.
- Sentinel Midstream, through subsidiary Texas GulfLink, is developing a crude oil deepwater export terminal 32 miles off the Gulf Coast at Freeport with the capability to load VLCCs at a rate of 1.2 MMBPD. The Texas GulfLink project will include an onshore oil storage terminal connected by a 42” pipeline to a manned offshore platform. Sentinel is headquartered in Dallas.
- Dallas-based Ocelot Energy Management offers end-to-end management services for liquid and natural gas pipelines, processing plants, terminals, and storage facilities. Turnkey services include operations and maintenance; engineering, permitting, construction management and technical support; and financing and accounting.
- Blackbuck Resources designs and builds produced-liquids infrastructure between well sites and processing facilities. Based in Houston, Blackbuck operates across Texas, N.M., and Okla., offering gathering, disposal and treatment solutions, as well as pond management.
- From The Woodlands, Texas, NAmerico Energy has numerous projects on its whiteboard. Although construction has been delayed until 2021, NAmerico’s first venture will be the 445.5-mile natural gas Pecos Trail Pipeline that will provide a direct link between the Permian and Gulf Coast demand centers. NAmerico also plans to build two laterals that will include the 40-mile Midland, which will extend from Sprayberry to Sheffield, Texas, and the 55-mile Orla in the Delaware that would connect to the Pecos Trail Pipeline at the Waha hub.
- Dallas-based startup Cornerstone Midstream has partnered with a private producer in Andrews County, Texas, to build out a midstream system in the Midland sub-basin that will include natural gas gathering and processing as well as crude oil and water gathering.
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