Canyon Midstream Partners has received a $300 million capital commitment from Kayne Anderson Capital Advisors and company management. Houston-based Canyon plans to use the funds to develop, acquire and operate midstream energy assets and businesses.
Canyon Midstream Partners, LLC (“Canyon”) has received a capital commitment of $300 million from Kayne Anderson Capital Advisors (“Kayne Anderson”) and Canyon management to support Canyon’s strategy to develop, acquire and operate midstream energy assets and businesses. Canyon is focused on developing midstream assets and providing services in conventional and unconventional production regions in North America, where improved exploration and production technology is increasing hydrocarbon recoveries.
Canyon (www.canyonmidstream.com) was formed by former senior management of Delphi Midstream Partners, LLC and Laser Northeast Gathering Company, LLC. The Canyon team is led by Michael Walsh, President & CEO; Mark Fuqua, SVP Business Development; and Dale Harper, SVP Engineering & Operations.
Prior to forming Canyon, the management team led the development, construction and operation of the Laser Northeast Gathering System in Susquehanna County, PA, and Broome County, NY, which was sold to Williams Partners in early 2012. The Laser Northeast system was the first independent gathering system developed in northeastern Pennsylvania and at the time of sale consisted of approximately 39 miles of pipeline, 6 field compression sites and an expandable 10,000 hp compressor station at the system’s interconnection with the Millennium Pipeline.
“Canyon presented a unique opportunity for Kayne Anderson to invest in an established and proven management team that has developed, acquired and operated successful midstream businesses by focusing on their customers’ business challenges. As a longtime investor in the E&P business, we have an appreciation for the value that can be created by a responsive, entrepreneurial and well-capitalized midstream company,” said Danny Weingeist, Managing Partner of Kayne Anderson Energy Funds.
Mr. Walsh said: “The Canyon team is excited to partner with an experienced and successful energy investor like Kayne Anderson. We believe that the technical expertise, industry relationships and financial resources of our equity partner will augment the management team’s experience in creating a world-class midstream company.”
“The ongoing transformation of the U.S. energy sector presents exciting opportunities for an entrepreneurial, creative and experienced midstream company and we intend to be at the forefront in partnership with our customers.”
ABOUT KAYNE ANDERSON ENERGY FUNDS
Established in 1984, Kayne Anderson Capital Advisors is a leading financial management firm with over $15 billion in assets under management. The firm pursues alternative investment niches that offer attractive and sustainable returns with moderate levels of risk. Kayne Anderson’s separately dedicated investment teams focus on generating returns across a variety of strategies, including energy private equity, publicly-traded master limited partnerships, growth private equity, niche real estate and mezzanine financing.
Through Kayne Anderson Energy Funds, the firm manages over $4.0 billion of committed capital dedicated to private equity investments in primarily upstream oil and gas companies. Currently, the firm has over 40 active portfolio companies focused on the acquisition and development of upstream oil and gas assets across North America.
The firm is headquartered in Los Angeles with offices in Chicago, Denver, Houston and New York. For more information, please visit www.kaynecapital.com.
ABOUT CANYON MIDSTREAM PARTNERS, LLC
Canyon is a Houston-based company formed to acquire, develop and operate midstream energy companies and assets. Canyon seeks opportunities to create long-term value for its investors and employees through operational improvements, organic and strategic growth and efficient capital investment. More information can be found at www.canyonmidstream.com.
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