Ironwood II has also signed an agreement to acquire midstream assets in South Texas currently owned by Twin Eagle Gardendale Pipeline
Midstream services company Ironwood Midstream Energy Partners II (Ironwood II) has secured $400m investment from EnCap Flatrock Midstream.
Ironwood Midstream Energy Partners has formed Ironwood II that will focus on the development of midstream infrastructure for oil and gas producers working in shale plays across North America.
Ironwood II chairman, president, and CEO Mike Williams said: “The mutual trust and respect we share is an important foundation for a business partnership.
“Our values are aligned and so is our approach to creating value in the midstream sector. Ironwood II couldn’t ask for a better sponsor.”
Ironwood II to acquire South Texas midstream assets from Twin Eagle subsidiary
Besides, the San Antonio-headquartered Ironwood II has signed a binding agreement to acquire midstream assets in South Texas which are currently owned and operated by Twin Eagle Gardendale Pipeline, a subsidiary of Twin Eagle.
The acquisition is anticipated to close in December this year.
The new affiliate will acquire Twin Eagle’s Gardendale and Asherton gathering systems, which together comprise 220.48km of crude oil collecting pipeline.
The pipeline connects to multiple long-haul pipelines and allows access to the US Gulf Coast, Three Rivers and Houston markets.
The Gardendale and Asherton systems, which are supported by long-term dedications totaling more than 124,000 acres, span Dimmit and La Salle counties.
For the transaction with EnCap Flatrock Midstream Gibson, Dunn & Crutcher served as legal adviser to Ironwood II with partner Beau Stark in the lead role from the firm’s Denver office.
EnCap Flatrock managing partner and founder Bill Waldrip said: “Mike Williams, Justin Johnson, Josh Doramus and Danny Rea have outstanding reputations and track records. We look forward to bringing more than capital by bringing our expertise and contacts to the table.”
In January this year, Clear Creek Midstream, an independent energy company, had secured an initial venture capital commitment of $300m from EnCap Flatrock Midstream.