As per the partnership, Riverstone will invest up to $500m in Meritage II in private equity capital for the development of the gathering systems and processing facilities.
Meritage II chairman and CEO Steven B Huckaby said, "Riverstone’s financial strength and insight together with our deep midstream experience and industry relationships put Meritage II in a very strong position."
Riverstone co-founders Pierre Lapeyre and David Leuschen in a joint statement said the company has partnered with the Meritage management team in building a North American natural gas-based midstream business.
"The team has delivered in the past, and we believe its experience and deep knowledge of many of the emerging resource plays will yield exceptional results once again," Lapeyre and Leuschen added.
Meritage II will continue to capitalize on the increase in natural gas and NGL production in North American shale plays and provide midstream solutions to optimize producer pricing.
The company will also pursue acquisitions as well as greenfield development opportunities.
US based Riverstone Holdings is an energy and power-focused private equity firm where as Meritage Midstream provides oil and gas producers with a full complement of midstream services.
