Crude oil logistics provider Getka Energy LLC has secured a $250 million initial equity commitment from management and EnCap Flatrock Midstream to expand storage, transport and market options for North America producers.
The Tulsa-based company expects to focus its early efforts on “multiple basins and market hubs throughout the Midcontinent,” including the Cushing, OK, crude oil hub.
“We believe there is a strong demand for a team that has a deep understanding of the crude oil supply chain, knows where the challenges and opportunities are and has the ability to execute reliably and rapidly,” Getka CEO Dariusz Cichocki said.
“We will be looking to put our expertise to work to create value for customers by taking an innovative, commercial approach to the market that pioneers new ways to maximize assets and the way crude moves from the field to market centers.”
Cichocki is a founding partner with Chief Commercial Officer Clete Straub and COO Matthew Turner. The three previously worked together at Enbridge Energy Partners LP, where they worked on developing storage and pipeline systems.
“EnCap Flatrock and the Getka team share a common approach to value creation,” said EnCap Flatrock managing partner David J. Kurtz, who also is a member of the Getka board. Cichocki, Straub and Turner “bring everything we look for in a management team, including a proven track record and a very well-defined strategic plan.”
EnCap Flatrock, based in San Antonio, TX, in January closed its fourth midstream fund, reaching its $3.25 billion hard cap within six months. The third midstream fund closed at $3 billion in May 2014.
“It is a very exciting time in midstream, and we are extremely pleased to be able to draw on a fresh pool of available capital,” EnCap Flatrock founder Bill Waldrip said at the time. In deploying the fourth fund, “we will continue to create value by supporting the best midstream management teams in North America and using our experience and contacts to help drive their success.”