Energy Spectrum commits $100 mln to BlueJack Energy Solutions

Energy Spectrum Capital made a $100 million investment in BlueJack Energy Solutions, LLC through Energy Spectrum Partners VII LP. BlueJack provides waste stream management services to oil and gas producers in the Permian Basin and the Marcellus and Utica shale plays. The company has contracts with Laredo Petroleum Inc.

Press Release

BlueJack Energy Solutions, LLC (“BlueJack”) today announced that it has secured an initial equity commitment of up to $100 million from Energy Spectrum Capital through Energy Spectrum Partners VII LP (“Fund VII”). Formed in the third quarter of 2015, BlueJack provides oil and gas producers with a full suite of waste stream management solutions including saltwater transmission and disposal, solids processing and disposal and wastewater recycling. BlueJack’s initial operations are focused in the Permian Basin and the Marcellus and Utica shale plays.

BlueJack has signed multiple contracts with Laredo Petroleum Inc. (“Laredo”) (NYSE:LPI) for water disposal services in the Permian Basin. Laredo will send to BlueJack a portion of Laredo’s produced and flowback water production from wells drilled within an area encompassing approximately 110,000 acres in Glasscock and Reagan counties in West Texas. To accommodate production from the dedicated acreage, BlueJack constructed two saltwater disposal facilities that will inject into the Ellenburger formation near Big Lake, Texas. Strategically located in Reagan County in the heart of the Permian’s Midland Basin, BlueJack’s Schwinn 5280 facility came into service in February 2016. BlueJack’s Merida 5280 facility is located in Glasscock County and came into service in April 2016. Both facilities serve producers targeting the Spraberry and Wolfcamp formations. Each facility has a permitted capacity of approximately 25,000 barrels per day (BPD). The facilities in place at the Schwinn and Merida sites are large enough to accommodate additional customers and also may be expanded as demand grows.

BlueJack is led by a management and advisory team with more than 100 years of experience in the energy industry. BlueJack Founder, President and CEO Ted Lopez has extensive experience in wastewater management. A proven leader, he also serves as president of an independent company that designs and builds waste management facilities to meet the needs of large public and private companies. Joining Mr. Lopez on the BlueJack management team are Chief Commercial Officer Chris Valenti, Chief Financial Officer Peter Lee and Regional Director of Business Development, Marcellus & Utica, Andrew Kilgore.

CEO Perspective

“Despite the dramatic shift in the commodities price environment, the opportunity for large-scale development of waste stream management and supply-side infrastructure continues to grow and expand,” said BlueJack CEO Ted Lopez. “Producers are focusing on plays with the best economics and are seeking relationships with reliable partners that have specific expertise and the ability to help them optimize operations and reduce lease operating costs. We established BlueJack alongside Energy Spectrum to combine and leverage our deep experience in waste stream management with their history of backing successful, growth-oriented midstream service providers.”

From Energy Spectrum Capital

“Energy Spectrum Capital is excited to partner with BlueJack,” said partner Mark Honeybone. “We are confident that the management team’s experience and successful track record of delivering oilfield infrastructure and outstanding service provides a strong foundation to build a new company and pursue a multibasin strategy. Ted and Chris have established several attractive anchor projects and have assembled a very talented team that will develop and operate high-quality assets, which is the cornerstone of our business model.”

About BlueJack Energy Solutions, LLC

BlueJack Energy Solutions serves oil and gas producers by handling oilfield waste streams with tailored solutions and best-in-class customer service that address each customer’s unique requirements. Services include saltwater transmission and disposal, solids processing and disposal, and wastewater blending and recycling. For more information, please visit www.bluejackenergy.com.

About Energy Spectrum Capital

Energy Spectrum Capital was founded in 1996 to manage private equity funds that make direct investments in well-managed companies that acquire, develop and operate midstream energy assets. The partners of the firm have spent almost all of their careers in the energy industry, with more than 175 years of collective experience in finance, investment and management roles. Since inception, the firm has raised more than $3.5 billion of equity capital from corporate and public pension funds, insurance companies, endowments, banks and other institutional investors. For more information, please visit www.energyspectrumcapital.com.