PE-backed Lucid receives $200 mln

Lucid Energy Group, which is backed by EnCap Flatrock Midstream, said Tuesday that it has closed a $200 million credit facility from Wells Fargo Securities and Cadence Bank. According to the company, the financing will be used to support its growth strategy in the Permian Basin. Based in Dallas, Lucid is a midstream services company.

PRESS RELEASE

DALLAS, Mar 04, 2014 (BUSINESS WIRE) — Lucid Energy Group, LLC (“Lucid”) announced today that the company has finalized a $200 million revolving credit facility. The additional financing will be used to support Lucid’s aggressive growth strategy in the Permian Basin. Together with private equity commitments from EnCap Flatrock Midstream and management, the credit facility provides Lucid with $425 million in total available financing.
Wells Fargo Securities, LLC and Cadence Bank, N.A. participated in the four-year credit arrangement and acted as joint lead arrangers. Thompson & Knight LLP served as legal counsel to Lucid Energy Group with partner John W. Rain leading the firm’s legal team from its Dallas office. Vinson & Elkins LLP, led by Erec R. Winandy, a partner in the firm’s Dallas office, represented the lending group.
Lucid increased its capital sources to support the rapid expansion of its pipeline gathering system and natural gas processing facilities in West Texas, which serve production from the Midland Basin’s Wolfcamp and Cline Shale formations. Lucid’s system includes more than 300 miles of high and low-pressure pipeline delivering liquids-rich natural gas to two separate cryogenic processing complexes in Sterling and Irion counties. In March 2014, the company commissioned a third cryogenic processing plant and a nitrogen rejection plant in Sterling County. The new plant brings Lucid’s total processing capacity to 120 million cubic feet per day.
Lucid’s gathering and processing facilities are supported by long-term acreage dedications and volume commitments from more than a dozen oil and gas producers including, Apache Corporation APA +0.80% , Devon Energy DVN -0.33% and EP ENERGY EPE -1.29% . Acreage dedications to Lucid exceed 800,000 acres across an eight-county area of the Midland Basin and include Wolfcamp Shale production centered in Irion, Reagan and Crockett counties and Cline Shale production centered in Sterling County.
“We are pleased with the progress our group has made to serve the needs of producers in the Wolfcamp and Cline,” said Michael Latchem, managing director and CEO of Lucid. “The additional financing is a testament to that progress and the outstanding response we’ve had from producers in the Midland Basin. Our team is looking forward to the continued success and development of our crude oil gathering business and to playing an important supporting role in the development of these world-class oil resource plays.”
About Lucid Energy Group, LLC
Dallas-based Lucid Energy Group is a midstream services company formed to develop and operate new oil and gas infrastructure and related facilities. Lucid’s business philosophy is focused on finding creative solutions for its customers and excellence in project execution. Lucid is led by Managing Directors Michael J. Latchem, W. Kyle Bebee and Jay L. Langham, and supported with capital commitments from EnCap Flatrock Midstream of San Antonio. Visit www.Lucid-Energy.com for more information.
About EnCap Flatrock Midstream
EnCap Flatrock 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. Visit www.efmidstream.com for more information

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