Houston-based Trace Midstream Partners LLC has secured more than $200 million in equity commitments that initially would be trained on natural gas, crude and water solutions in the Eagle Ford Shale in South Texas.
The private equity commitment from Quantum Energy Partners (QEP), management and other investors eventually would support midstream construction in “various basins” across North America, but South Texas is first on the list. Trace was formed with QEP’s backing in late 2017.
QEP “has a long track record of successful energy investments and shares our vision regarding midstream opportunities in the current market environment,” said Trace CEO Josh Weber, who most recently was senior vice president of commercial and business development for Howard Energy Partners (HEP).
“Their partnership, coupled with this initial acreage dedication, will allow us to establish a meaningful footprint in an area where we expect to see substantial growth,” Weber said. “Our objective is to leverage this anchor position as we work with other producers in the region to develop custom midstream solutions for their upstream development plans.”
First up for Trace is a natural gas gathering system and infrastructure to be built in phases for Houston-based private Vitruvian Exploration IV LLC, also sponsored by QEP. As part of its long-term, fee-based agreement with Trace, Vitruvian dedicated 130,000-plus acres in Webb, La Salle and McMullen counties.
Trace CFO Ben Beyer is also a HEP alumnus, having previously served as vice president of finance. Chief Commercial Officer Tim Dahlstrom has, among other things, worked for Energy Transfer Partners LP, where he was senior vice president of commercial operations.
“The Trace team has a history of success in the Eagle Ford, as well as other basins,” said QEP President Dheeraj Verma. “Our equity commitment demonstrates our confidence in their midstream experience and reputation across the industry.
“We remain excited about the midstream growth opportunities across South Texas and are enthusiastic about partnering with such a strong team with extensive knowledge of the area and proven operating capabilities.”