Morgan Stanley Energy Partners has acquired a majority stake in Entia Ventures‘ affiliate XRI Blue. No financial terms were disclosed. BofA Merrill Lynch provided financial advice to XRI Blue on the transaction. Based in Midland, Texas, XRI Blue is a water resource management company for the upstream exploration and production industry.
MIDLAND, TX August 23, 2016 – Investment funds managed by Morgan Stanley Energy Partners (collectively, “MSEP”), part of Morgan Stanley Investment Management, and Midland, TX-based XRI Holdings, LLC (“XRI Blue” or the “Company”), an affiliate of Entia Ventures, announced today a strategic partnership whereby MSEP has made a majority equity investment in XRI Blue to support the growth of XRI Blue’s successful midstream services business in the Permian Basin. Terms of the transaction were not disclosed.
XRI Blue is a leading water supply and pipeline transportation company providing world class water logistic solutions to upstream oil and gas producers in the Permian Basin of West Texas and New Mexico. The partnership with MSEP provides the Company with additional resources to accelerate the expansion of XRI Blue’s asset base, capabilities and portfolio of services offered to its customers.
XRI Blue’s senior management team, including Matthew Gabriel, Christopher Harich and Christopher Downs, has significant technical and operational water resource management experience and will continue to serve as the senior leadership team of the Company.
Matthew Gabriel, Co-Founder and Chief Executive Officer of XRI Blue, said, “We are very excited about this partnership and view Morgan Stanley Energy Partners as the ideal partner to support our long-term strategic plan to expand our existing asset base and provide best-in-class, environmentally-responsible water sourcing, water transportation and disposal solutions to our customers.”
John Moon, Managing Director and Head of Morgan Stanley Energy Partners, said, “We are pleased to be able to partner with XRI Blue to grow the Company into a leader in the water resource management industry. This is an extraordinary opportunity for us to invest alongside an exceptionally capable management team and in a company with a compelling value proposition that leverages an existing, highly differentiated asset base in one of North America’s most attractive oil and gas basins.”
BofA Merrill Lynch acted as XRI Blue’s financial advisor in connection with this transaction.
About XRI Blue
Headquartered in Midland, Texas, XRI Blue is a leading water resource management company engaged in the sourcing, production, transportation, storage, and sale of water for use in the upstream exploration & production industry. For further information about XRI Blue, please visit www.xriblue.com.
About Entia Ventures
Entia Ventures (“Entia”) is a closely held portfolio spanning multiple sectors, including defense and security, energy services, telecommunications and industrials. Entia aims to cultivate new starts using applied science to create innovative technology, novel approaches to commodity markets and technical industrial assets.
About Morgan Stanley Energy Partners
Morgan Stanley Energy Partners, the energy-focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 590 investment professionals around the world and $406 billion in assets under management or supervision as of June 30, 2016. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 43 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.