EnCap, along with management, commits $300 mln to Evolution Midstream

EnCap Flatrock Midstream committed $300 million to Evolution Midstream, along with Evolution management. Evolution, formed in July, focuses on greenfield and strategic acquisitions in the Rocky Mountains, Bakken Shale, Permian Basin, Mid-Continent and Appalachia. The company offers services like natural gas gathering, processing, treating and compression; crude oil gathering, transportation and marketing, freshwater delivery and produced water disposal, among others.

Press Release

Evolution Midstream, LLC (“Evolution”) today announced an initial commitment of $300 million from private equity firm EnCap Flatrock Midstream (“EnCap Flatrock”) and the Evolution management team. Launched in July 2015 and headquartered in Denver, Evolution offers a full suite of integrated midstream solutions to oil and gas producers operating across North America. The company currently is focused on greenfield and strategic acquisition opportunities in the Rockies, Bakken Shale, Permian Basin, Mid-Continent and Appalachia. Services include natural gas gathering, processing, treating and compression; crude oil gathering, transportation and marketing; freshwater delivery and produced water disposal; and ancillary services including land acquisition and right-of-way negotiation, environmental and transportation services, and terminal startup, operation and management.

Evolution’s management team is comprised of six founding partners, a group of energetic oil and gas professionals with diverse industry experience and a proven ability to execute on growth-oriented midstream projects.

Chairman and CEO John A. Raber leads the management team and oversees the execution of its strategic vision. He has more than 39 years of energy industry experience. In 2000, Mr. Raber co-founded ScissorTail Energy, LLC (“ScissorTail”) and served as its president and chief operating officer until 2005, when Copano Energy, LLC (“Copano”) purchased ScissorTail for $500 million. Copano is now a wholly owned subsidiary of Kinder Morgan, Inc. (NYSE: KMI). Following the sale, Mr. Raber served as executive vice president of Copano until 2010. Prior to leading the formation of Evolution Midstream, he led Raber Consulting, a midstream consulting service with customers including Kinder Morgan, Copano and Rice Energy Inc. (NYSE: RICE).

Evolution’s other founding members are Vice President of Corporate Development Jeff Oliver, Vice President of Engineering Chuck Burris, Vice President and General Counsel Raj Basi, Vice President of Business Development Tyler Shaw and Vice President of Marketing Shannon Swanson.

CEO Perspective

“We are excited to partner with EnCap Flatrock, the nation’s undisputed leader in midstream private equity,” said Evolution Midstream Chairman and CEO John Raber. “EnCap Flatrock’s financial support and deep understanding of the entire midstream value chain will help us provide a valuable portfolio of midstream solutions to North America’s oil and gas producers. Evolution’s goal is to create value for our customers by offering flexible commercial solutions for safely and efficiently moving hydrocarbons to the market. By providing an integrated set of midstream services, we are able to work with our customers to drive down costs and reduce environmental impact.”

From EnCap Flatrock Midstream

“John Raber’s outstanding track record of success in midstream is well known across the industry. The Evolution team is a highly motivated and skilled group of individuals, and we are pleased to support the growth of the company’s unique vision,” said Morriss Hurt, a managing director at EnCap Flatrock and a member of Evolution Midstream’s board of directors.

Legal

Evolution Midstream was advised by attorneys in the Pittsburgh and Denver offices of Buchanan Ingersoll & Rooney, PC. The team was led by partner Sean Moran from the Pittsburgh office. Thompson & Knight LLP represented EnCap Flatrock Midstream, with partner Sarah E. McLean leading the legal team from the firm’s Houston office.

About Evolution Midstream

Headquartered in Denver, Evolution Midstream is an independent midstream oil and gas company. Launched in July 2015 to fill strategic voids in the midstream sector, Evolution creates value for producers by offering flexible commercial solutions and integrating natural gas, crude oil, water and ancillary land and environmental services into one full-service portfolio of innovative midstream solutions. Capabilities include natural gas gathering, processing, treating and compression; crude oil gathering, transportation and marketing; freshwater delivery and produced-water disposal; and ancillary services including land acquisition and rights-of-way negotiation, environmental and transportation services and terminal startup, operations and management. www.evolutionmidstream.com

About EnCap Flatrock Midstream

EnCap Flatrock Midstream provides value-added private equity capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors. Based in San Antonio, with offices in Oklahoma City and Houston, EnCap Flatrock is led by Managing Partners William D. Waldrip, Dennis F. Jaggi and William R. Lemmons Jr. The firm manages investment commitments of nearly $6 billion from a broad group of institutional investors. EnCap Flatrock is currently making commitments to new management teams from EFM Fund III, a $3 billion fund. www.efmidstream.com

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