Denham Backs Tradition Midstream with $200M

Denham Capital has put $200 million into Tradition Midstream, a provider of services to energy producers and consumers. The new funding will help the company expand its infrastructure. Denham Capital is an energy-focused global private equity firm.

PRESS RELEASE
Tradition Midstream, LLC announced today the closing of a $200 million equity commitment from Denham Capital.

Denham Capital’s funding will help the Company take advantage of the increasing need for new and expanded infrastructure required by the continued growth of natural gas, natural gas liquids and crude oil production in the United States today.

“There is a tremendous opportunity for an established midstream management group to assist producers and consumers in developing, constructing and operating infrastructure in emerging shale plays across the US,” said John O’Shea, CEO of Tradition. “Tradition’s team has an excellent track record of providing value-added solutions for our customers by serving as an extension of their company and providing timely, low cost and reliable gathering, processing and transportation services which will help bring natural gas, natural gas liquids and crude oil to market. We selected Denham as our capital partner because of their ongoing commitment to the producer community and their reputation as a knowledgeable and responsive collaborator in the energy sector. This partnership will allow us to become the midstream services provider of choice.”

Tradition’s management team of O’Shea, Don Brown, President, James Lee, CFO, Bryan Johnson, COO, and Mark Edge, VP, Land & ROW, has more than 100 years of combined experience in the midstream sector. Its principals have a proven record of value creation and first worked together in the 1990s at Natural Gas Clearinghouse/Dynegy before building Millennium Midstream Partners. Co-founded by O’Shea in 2002, Millennium became the fastest growing private energy company in America by 2007 and was ranked 63rd on the annual Inc. Magazine 500 list that same year. The following year, Millennium Midstream Partners was purchased by Eagle Rock Energy Partners.

By reuniting the Millennium team to form Tradition, the management group has focused on acquiring and enhancing existing assets along with developing new midstream assets with an emphasis on domestic shale plays.

“Denham is excited to partner with Tradition and is looking forward to assisting the Company’s continued growth,” added Bill Zartler, Managing Partner of Denham Capital. “We have known the Tradition principals for nearly two decades and witnessed the significant success of Millennium. This partnership builds on the success of Denham’s existing oil and gas portfolio and will provide crucial capital for US oil and gas infrastructure over the next decade.”

About Tradition Midstream, LLC
Tradition Midstream, LLC is focused on designing, building, owning, operating and acquiring midstream assets to provide services to energy producers and consumers. The Company’s management team has more than 100 years of combined experience in the midstream sector working with producers, processors, pipelines, contractors, fractionators, landowners and end-use markets. It is currently pursuing midstream projects in conventional production regions and emerging resource plays throughout the United States by offering services such as natural gas gathering, natural gas compression, natural gas treating and dehydration, natural gas processing, and natural gas, natural gas liquids and crude oil marketing to its producer and downstream customers. For more information about Tradition Midstream, LLC visit www.traditionmidstream.com.

About Denham Capital
Denham Capital is a leading energy-focused global private equity firm. With over $4 billion of invested and committed capital, Denham makes direct investments in the energy and commodities sectors, including businesses and assets involving oil and gas, metals and mining, and power and renewables. With offices in Boston, Houston, Short Hills, London, Sao Paulo and Singapore, Denham invests globally, with investments currently in the US, Canada, the Caribbean, South America, Europe, Australia and Asia. Denham invests across all stages of the corporate lifecycle, from exploration and development projects to mature, operating businesses, and all segments of the capital structure. Denham typically targets investments between $50 million and $300 million.