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Houston-based Durango Midstream, run by a former Energy Transfer Partners LP executive, has gained private equity (PE) backing to support onshore natural gas processing development, initially in the heart of Oklahoma’s myriad reservoirs.
Funds managed by Morgan Stanley Energy Partners (MSEP), the energy-focused PE business of Morgan Stanley Investment Management, said it would gain a majority stake in Durango Midstream by providing an undisclosed amount to Durango Investment Holdings LLC.
“We are excited about our strategic partnership with Morgan Stanley Energy Partners,” said Duncan Midstream CEO Richard A. Cargile. “Their global network and...their history of success in the energy business will help us accelerate our growth plans in the Midcontinent and expand into other leading oil and gas basins in the United States.”
Initial growth projects by Duncan Midstream are to focus on gathering and processing upgrades in Grady County, OK, to support producers working various targets that include the up-and-coming Merge play and the two most active targets, the SCOOP, otherwise known as the South Central Oklahoma Oil Province and the STACK, aka the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties.
The business, said MSEP managing director Robert Lee, “is uniquely positioned for growth.”