TEAK Midstream LLC, a Dallas, Texas-based midstream energy startup, has raised $100 million in private equity funding from Natural Gas Partners. TEAK was launched by Crosstex Energy co-founders Chris Aulds and James Wales.
TEAK Midstream, LLC today announced that it has secured a $100 million private equity investment from Natural Gas Partners (NGP), a leading energy private equity firm based in Irving, Texas. TEAK, a Dallas-based midstream start-up, will use the private equity investment to acquire and develop midstream assets in key gas producing areas of the United States.
TEAK Midstream is led by A. Chris Aulds and James R. Wales. Together, Aulds and Wales have more than 55 years of oil and gas industry experience and proven expertise launching and growing start-up midstream companies. Prior to starting TEAK, they were two of the original three founders of Crosstex Energy, Inc. (NASDAQ symbol: XTXI) where they were instrumental in growing the company from a $4 million start-up in 1996 to a $3 billion publicly traded company at the time of their departure in 2007.
“TEAK’s solid financial backing from Natural Gas Partners combined with our experience starting and growing midstream companies provides a unique blend of business acumen and access to capital,” says TEAK Co-Chief Executive James R. Wales.
Through strategic acquisitions and greenfield projects, TEAK will provide midstream services including gathering, transmission, treating, processing, compression, marketing and price risk management. The company will initially focus on gas production areas in Texas, Louisiana, Oklahoma and Mississippi with anticipated geographic expansion based on customer needs.
“Jim and I look forward to working with industry colleagues again,” says TEAK Co-Chief Executive A. Chris Aulds. “The timing is right for a new customer service oriented midstream company with proven experience acquiring and developing midstream assets to support our customer’s growth plans. The capital investment from our private equity partner will assist in our ability to meet customer needs.”
About A. Chris Aulds
Prior to founding TEAK Midstream, Aulds was a senior executive and founding partner at Crosstex Energy Services. While at Crosstex, he managed several divisions of the company including the Producer Services Group, Treating Division and Crosstex’ Eastern Division which included transmission, gathering and processing in East Texas, Louisiana, Mississippi, Alabama and eastern Oklahoma. Prior to starting Crosstex, Aulds was Vice President of gas supply and marketing for Comstock Natural Gas; Vice President in charge of gas supply, marketing, new business development and risk management services at Victoria Gas Corporation; and held field engineering and natural gas marketing roles at Mobil Oil Corporation. Aulds has a B.S. in Petroleum Engineering from Texas Tech University.
About James R. Wales
Prior to founding TEAK Midstream, Wales was a senior executive and founding partner at Crosstex Energy Services. While at Crosstex, he led the business development group; managed the company’s Southern Division including transmission, gathering and processing in South and North Texas; and served as head of the Commercial Division. Prior to starting Crosstex, Wales was one of the founders of Sunrise Energy Services, Inc. He helped build Sunrise from a start-up to one of the largest publicly traded independent natural gas marketing companies in the United States. Prior to starting Sunrise, Wales held positions with Producers Gas Company, a subsidiary of Lear Petroleum; Triumph Natural Gas, Inc.; and Union Carbide. He is a former Chairman of the National Energy Services Association. He has a B.S. in Civil Engineering from the University of Michigan and a Law Degree from the South Texas College of Law.
About TEAK Midstream
TEAK Midstream LLC provides gathering, transmission, treating, processing, compression, marketing and price risk management services in key gas producing areas of the United States. For more information on TEAK Midstream, visit www.teakmidstream.com