Rimrock Midstream closes acquisition of El Dorado Storage Terminal

Rimrock Midstream said Thursday that it has completed its acquisition of the El Dorado Storage Terminal from Enbridge Energy Partners. No financial terms were disclosed. In conjunction with the closing, Rimrock has formed an up to $160 million financing relationship with Energy Capital Partners to support Rimrock’s growth initiatives. Located two miles west of El Dorado, Kansas, the El Dorado Storage Terminal is a service provider to the nearby El Dorado refinery.

PRESS RELEASE

DALLAS, Nov. 7, 2013 /PRNewswire/ — Rimrock Midstream, LLC (“Rimrock”), a growth-oriented midstream company, announced today completion of its acquisition of the El Dorado Storage Terminal from a subsidiary of Enbridge Energy Partners, L.P. Concurrent with the closing of the acquisition, Rimrock established a strategic financing relationship with Energy Capital Partners with the ability to expand the funding up to an aggregate $160 million to support Rimrock’s growth initiatives. Rimrock will work closely with Energy Capital Partners to fund Rimrock’s strategy of building and acquiring crude oil-related midstream energy assets.
The El Dorado Storage Terminal, located two miles west of El Dorado, Kansas, has been a critical and reliable service provider to the nearby El Dorado refinery since the early 1950’s. Rimrock’s facility is the termination point for the Osage Pipeline and has a combined nominal storage capacity of 1.15 million barrels. In addition to receiving crude oil, the El Dorado Storage Terminal is an attractive storage and blending location for Kansas crude oil producers, which have experienced significant production growth in recent years.
“The El Dorado Storage Facility will be a strong anchor asset for our midstream platform, while offering attractive organic expansion opportunities. We are excited to be working with Energy Capital Partners. Their unparalleled industry relationships and tremendous financial strength, coupled with our team’s industry experience, creates a strong partnership that will enable us to develop value-added solutions for producers, traders and refiners,” said John Peterson, Rimrock’s Chief Executive Officer.
“Partnerships with successful operating businesses that have talented and experienced management teams are core to Energy Capital’s investment strategy. We have been impressed with the depth and breadth of Rimrock’s midstream experience and the company’s solid operating track record. Providing financing in support of the El Dorado acquisition is the first of many transactions that we hope to do together with Rimrock, as the company creates a leading midstream platform through a buy-and-build strategy,” said Nazar Massouh, who leads ECP’s energy-focused mezzanine investment activities.
Baker & McKenzie LLP acted as legal advisor to Rimrock Midstream; Latham & Watkins LLP acted as legal advisor to Energy Capital Partners.
About Rimrock
Rimrock Midstream, LLC is a strategic, growth-oriented company formed to acquire, develop and operate a portfolio of midstream energy infrastructure assets. Rimrock has been engaged in the business of acquiring, transporting and storing crude oil in Oklahoma, Kansas, Texas, North Dakota, Wyoming, Colorado and New Mexico since 2009. For more information, visit www.rimrockmidstream.com.
About Energy Capital Partners
Energy Capital Partners is a private equity firm with over $8 billion in capital commitments. The firm is focused on investing in the power generation, midstream oil and gas, environmental infrastructure, renewable energy, electric transmission, and energy services sectors of North America’s energy infrastructure. Its management has substantial experience leading successful energy companies and energy infrastructure investments. For more information, visit www.ecpartners.com.