ArcLight Capital Partners-backed JP Energy agrees to buy Wildcat Permian Services

JP Energy Development, a subsidiary of the ArcLight Capital Partners-backed JP Energy Partners, has agreed to acquire Wildcat Permian Services from Wildcat Midstream Mesquite and Approach Midstream Holdings. No financial terms were disclosed for the transaction, which is expected to close late in the third quarter or early in the fourth quarter of 2013. Based in North Texas, Wildcat Permian Services runs a 40-mile crude gathering and storage system in Crockett, Iron and Reagan Counties.

PRESS RELEASE
IRVING, Texas–(BUSINESS WIRE)–JP Energy Development LP (“JP Energy”), an affiliate of JP Energy Partners LP, has agreed to acquire all of the equity interests in Wildcat Permian Services LLC (“Wildcat”) from Wildcat Midstream Mesquite, LLC and Approach Midstream Holdings, LLC, an affiliate of Approach Resources Inc. (NASDAQ: AREX). The transaction is expected to close late in the third quarter or early in the fourth quarter of 2013.
Wildcat owns and operates a long-term contracted oil pipeline system consisting of approximately 50 miles of high-pressure, steel pipeline in Crockett and Reagan Counties, Texas, with throughput capacity of 100,000 Bbls/d, truck terminals and LACT bay facilities, multiple receipt points and 40,000 Bbls of crude oil storage. JP Energy provides an integrated platform of crude oil gathering, transportation and marketing services to producers and refiners in the Mid-Continent area, and the acquisition of Wildcat will extend JP Energy’s reach into the rapidly growing southern Midland Basin, and will further diversify JP Energy’s portfolio of transportation and storage assets.
In connection with the acquisition of Wildcat, JP Energy and Approach will enter into a revised crude oil purchase agreement under which JP Energy will purchase and transport Approach’s crude oil production from approximately 110,000 acres in Crockett and Schleicher Counties, Texas.
“JP Energy is excited to partner with Approach and to extend and diversify our portfolio into the Permian Basin,” stated J. Patrick Barley, JP Energy’s President and CEO. “Approach’s management team has a proven track record of developing unconventional oil and gas properties in formations like the prolific Wolfcamp shale oil play.”
JP Energy Development LP is a crude oil midstream company that purchases, gathers, transports, blends, stores and markets crude oil for producers and refiners in the Mid-Continent area, and the company currently moves approximately 40,000 barrels a day of crude oil. JP Energy Development owns approximately 70 crude oil transports, 23 truck injection stations, approximately 70Mbbls of crude oil storage and over 200 miles of crude oil pipelines. JP Energy Development is an affiliate of JP Energy Partners LP. JP Energy Development and JP Energy Partners LP are supported by equity commitments from affiliates of ArcLight Capital Partners, LLC (“ArcLight”). Additional information about JP Energy Development and JP Energy Partners can be found at www.jpenergypartners.com.
ArcLight Capital Partners, LLC is one of the leading private equity firms focused on North American energy infrastructure assets. Since its establishment in 2001, ArcLight has invested over $10 billion across multiple energy cycles in more than 100 power, midstream and production assets. Headquartered in Boston, Massachusetts with an additional office in Luxembourg, the firm’s investment team brings extensive energy expertise, industry relationships, and specialized value creation capabilities to its portfolio. Visit www.arclightcapital.com for more information.
Approach Resources Inc. is an independent oil and gas company with core operations, production and reserves located in the Permian Basin in West Texas. Approach targets multiple oil and liquids-rich formations in the Permian Basin, where the company operates approximately 152,000 net acres. For more information about Approach, please visit www.approachresources.com.
Wildcat Permian Services LLC is a 50% owned indirect subsidiary of Wildcat Midstream Holdings LLC. Wildcat is an oil and gas infrastructure development company owned by Liberty Energy, Highstar Capital and management. In addition to its ownership interest in Wildcat Permian Services LLC, Wildcat currently owns and operates a state-of-the-art cryogenic processing facility in North Louisiana with a design capacity of 140 MMcf/d and 400 gpm of amine treating.