Rangeland Energy Inks $200M Equity Financing

Rangeland Energy has secured a $200 million equity financing commitment from EnCap Flatrock Midstream of San Antonio. The company is focused on the gathering, storing and transportation of crude oil, natural gas and other similar products. EnCap is a return investor in the company. In November 2009, EnCap Flatrock made a $115 million commitment to Rangeland from its first fund, the firm said.

PRESS RELEASE
Rangeland Energy, LLC (“Rangeland”) announced today that the company has secured a $200 million equity financing commitment from EnCap Flatrock Midstream of San Antonio. Rangeland is a midstream company that meets the requirements of crude oil refiners, marketers and producers in emerging resource plays. Rangeland develops the infrastructure necessary to gather, store and transport crude oil, natural gas, natural gas liquids, and other petroleum products by rail and pipeline to refineries and market hubs across North America.

“We are delighted to partner with this leadership team on the continued growth and development of Rangeland Energy”

This is the second time EnCap Flatrock has backed the Rangeland management team. In November 2009 EnCap Flatrock made a $115 million commitment to Rangeland from its first fund to support the company’s successful greenfield development of the COLT system, North Dakota’s largest open access crude oil marketing hub. COLT serves the prolific Bakken and Three Forks shale plays and was acquired by Inergy Midstream, L.P. in December 2012 for $425 million. The recent $200 million commitment was made from EnCap Flatrock Midstream’s Fund II which closed in July 2012 at $1.75 billion. Jones Day served as legal counsel to Rangeland Energy and Thompson & Knight represented EnCap Flatrock Midstream.

CEO Perspective

“We are all excited about this new equity commitment from EnCap Flatrock, and the continuation of our ongoing relationship with them. We didn’t look anywhere else. EnCap Flatrock has been a great equity partner, providing the midstream expertise and financial strength we need to continue serving our customers and growing our business,” said Rangeland’s CEO, Chris Keene.

“The Rangeland team is a proven, experienced group capable of executing strategic infrastructure projects. The COLT facility we developed and constructed is well positioned to be the premier crude oil terminal in the Bakken. We look forward to building on our success by pursing similar opportunities in North American shale plays with an emphasis on West Texas, the Gulf Coast, California and Canada.”

From EnCap Flatrock

“We are delighted to partner with this leadership team on the continued growth and development of Rangeland Energy,” said Bill Waldrip, EnCap Flatrock’s founder and one of three managing partners. “We were extremely impressed with the quality and scope of the asset base that Rangeland assembled in the Bakken Shale in a very short period of time, and we are honored and excited to be part of the next stage of Rangeland’s growth story.”

Pat McGannon Joins Rangeland as Vice President, Business Development

Rangeland also announced that industry veteran Pat McGannon has joined the company as vice president for business development. Mr. McGannon has more than 30 years of experience in the oil gas industry in a broad range of positions with a focus on developing businesses around the trading and transportation of crude oil, condensate and natural gas liquids.

Mr. McGannon worked with BP/Amoco for 32 years, most recently as the commercial manager for Denali, The Alaska Gas Pipeline in Anchorage. In this role he was responsible for development of the company’s commercial strategy and negotiations with Alaska’s major oil and gas producers to provide the commitments necessary to build the proposed $35 billion pipeline. Prior positions at BP/Amoco included business development manager for BP’s NGL groups in Houston and Calgary, business development manager for BP Pipelines North America in Houston, and crude oil trading manager for Amoco in Chicago. Mr. McGannon earned an undergraduate degree in mechanical engineering from University of Dayton in Ohio and holds a Master of Management degree from Northwestern University’s Kellogg School of Management in Chicago.

“I am extremely pleased to welcome Pat to Rangeland Energy,” said CEO Chris Keene. “I’ve known Pat for 15 years. He raises the level of experience and capability at Rangeland. Pat has a proven track record of effectively developing midstream projects and he brings additional industry relationships to the company.”

“I’m excited to join the Rangeland team and look forward to playing a key role in the continued growth of the company,” said McGannon. “Rangeland’s mandate to develop and invest in strategic midstream infrastructure and its proven ability to execute makes this a very exciting opportunity.”

About Rangeland Energy, LLC

Headquartered in Sugar Land, Texas, Rangeland Energy, LLC was formed in 2009 to focus on developing, acquiring, owning and operating midstream infrastructure for crude oil, natural gas, natural gas liquids and other petroleum products. The company is primarily focused on emerging shale plays across North America with an emphasis on West Texas, the Gulf Coast, California and Canada. The Rangeland team represents more than 100 years of combined midstream experience and is backed by an equity commitment from EnCap Flatrock Midstream. For more information, please visit www.rgldenergy.com.

About EnCap Flatrock Midstream

EnCap Flatrock Midstream provides value-added private equity capital to proven management teams focusing on midstream infrastructure opportunities across North America. Founded in 2008 by EnCap Investments L.P. and Flatrock Energy Advisors, the firm is based in San Antonio and led by Managing Partners William D. Waldrip, William R. Lemmons Jr. and Dennis F. Jaggi. With more than 100 years of midstream experience, the principals at EnCap Flatrock manage a dedicated professional staff and midstream-focused investment commitments of nearly $3 billion from a broad group of prestigious institutional investors. EnCap Flatrock is currently investing out of EnCap Flatrock Midstream Fund II, a $1.75 billion fund. EnCap Flatrock’s current portfolio includes Caballo Energy, Caiman Energy II, Cardinal Midstream, EagleClaw Midstream, Lucid Energy Group, Nuevo Midstream, Rangeland Energy, Tradition Midstream, and US Infrastructure. Visit www.efmidstream.com for more information.

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