In the new normal, even publicly held midstream companies flirt with a capital infusion from private equity. For PE firms like Five Point Energy, taking private those oil, gas and water infrastructure builders, owners and operators enables both startups and established names to execute growth strategies by partnering with an investment team that knows the midstream business inside and out.
Five Point Energy
Founded in 2012, Five Point is an energy investment firm focused on building businesses within the midstream and energy infrastructure sectors. Led by industry veterans who have had successful careers leading midstream companies, Five Point leverages its “operating approach” to acquire and develop in-basin assets, provide value-added growth capital, and build world-class midstream companies with premier management teams and industry-leading E&P partners.
In this first in a series of The Money Backers, Reese Midstream Report spotlights Houston-based Five Point Energy whose portfolio investments include San Mateo Midstream, Twin Eagle, Waterbridge Resources, and EVX Midstream. CEO David Capobianco describes them as convergent businesses in today’s oil patch and common sense will tell you he ain’t wrong.
Let’s take these one by one.
San Mateo is a joint venture between Dallas-based Matador Resources—an E&P and midstream operator—and Five Point, providing natural gas gathering and processing, saltwater gathering and disposal, and crude oil gathering in the Delaware Basin. Assets include a 60 MMCFD processing plant, a 200 MMCFD processing plant, 30 miles of gas gathering pipelines, 30 miles of water gathering lines, 25 miles of oil gathering lines, and 60,000 Bbls of crude oil storage.
Twin Eagle is one of the largest third-party frac sand terminal developers in the country, serving the DJ and Powder River basins as well as the Eagle Ford with a combined control over 1,500 rail car spaces and nearly 65,0000 tons of storage capacity. The company also markets natural gas, power and environmental products and services.
Waterbridge, as its name would imply, is the nation’s largest pure-play midstream water management company with 980 miles of pipeline capable of handling 1.8 million Bbls of water each day. With the acquisition last year of PDC Energy’s water infrastructure, Waterbridge owns and operates a network of 62 produced water disposal wells in the Southern Delaware.
EVX Midstream operates the largest produced water gathering system in the Eagle Ford to the tune of 350 miles of pipe that link to its 26 disposal systems with a capacity of 600,000 BPD. EVX just announced Phase II construction to its system, which will add another 500 miles of gathering lines.
What do you think?