Harvest Partners Buys Into Seminole Energy Services

Harvest Partners has made a “major investment” in Seminole Energy Services LLC, a Tulsa-based provider of natural gas services. No financial terms were disclosed.

PRESS RELEASE

Harvest Partners, LP (“Harvest”) and Seminole Energy Services, LLC (“Seminole”) jointly announced today that Harvest has made a major investment in Seminole. Proceeds from the transaction will be used to fund acquisitions, finance accretive growth projects and repurchase equity units from certain existing holders. Harvest will occupy two seats on Seminole’s Board of Directors and obtain additional governance rights in connection with the investment. Further terms of the transaction were not disclosed.

Tulsa-based Seminole is a private, diversified natural gas service provider with operations spanning the natural gas value chain throughout the Mid-continent and into Appalachia. The company’s primary business units include natural gas midstream services, producer services, wholesale marketing and retail marketing. Seminole owns interests in 14 midstream facilities including over 900 miles of gathering pipelines, 28,000 horsepower of compression, gas processing facilities and a natural gas liquids storage facility and rail terminal. Additionally, the company has wholesale marketing relationships with over 750 natural gas producers and a retail marketing business encompassing 16 states that services over 1.5 billion cubic feet of natural gas per day in peak seasons.

Robert B. Rosene, Jr., Seminole’s Chief Executive Officer, said, “Seminole is pleased to welcome Harvest as a full partner in our business. The Harvest investment demonstrates significant confidence in Seminole’s historic performance and platform for continued growth.”

Rick Turner, Seminole board member for investor, The Stephens Group, LLC, said, “Harvest brings significant additional financial experience, strength and relationships to Seminole, as well as expertise in the oil and gas sector. We look forward to working closely together.”

Michael B. DeFlorio, Senior Managing Director at Harvest, said, “We are very pleased to announce our investment in Seminole, which underscores Harvest’s long-term commitment to the energy sector. Seminole, with exceptional management and a long track record of accretive growth in diversified midstream natural gas businesses, is an optimal vehicle to participate in the continued growth of the U.S. natural gas market.”

Christopher D. Whalen, Principal at Harvest, said, “Seminole represents a highly-compelling investment opportunity due to its conservative, fee-based business model capitalizing on robust natural gas volume trends. The company’s strong management team, synergistic service suite and financial profile provide an ideal platform for future midstream acquisitions, which will continue to be a primary point of strategic focus.”

About Seminole Energy Services, LLC
Seminole (www.seminoleenergy.com) and its subsidiaries provides “wellhead-to-burner tip” natural gas midstream and marketing services to end users and producers throughout the central United States. In Illinois and Michigan, Seminole operates under its affiliate brands, Vanguard Energy Services and Lakeshore Energy Services, respectively. Seminole’s customer base today numbers over 6,200 customers with average daily natural gas sales of 1,000,000 million cubic feet.

About Harvest Partners, LP
Founded in 1981, Harvest Partners, LP (www.harvpart.com) is a New York-based private equity investment firm, pursuing management buyouts and growth financings. Focused on manufacturing, energy, specialty services and consumer businesses, Harvest Partners has nearly 30 years of experience investing in domestic and multinational companies. Harvest Partners invested in Seminole through its Harvest Energy Investors, LLC vehicle. Recent energy investments include Regency Energy Partners LP (NASDAQ: RGNC), a midstream natural gas services provider that specializes in the gathering and processing, contract compression, and transportation of natural gas and natural gas liquids.

About The Stephens Group, LLC
The Stephens Group (www.stephensgroup.com) is a private, family-owned firm that invests its capital in private companies with exceptional management teams and high returns on invested capital in growing industries. The principals of The Stephens Group have over 70 years of history in successfully investing in both minority and control positions across multiple industries. The Stephens Group, through its affiliates, has large positions in energy services, gas exploration and production, media, communications, consumer, manufacturing and other industries.