With an initial commitment of $400 million from EnCap Flatrock Midstream, newly formed operator Edgewater Midstream LLC is focusing on acquiring and developing pipeline and terminal solutions for major North American petroleum trading hubs and demand centers.
Edgewater was formed in late 2019 by the management team and to provide midstream logistics solutions for oil refiners, producers and marketers.
Houston-based Edgewater is led by CEO Stephen Smith, previously vice president (VP) of onshore facilities and transportation at Genesis Energy LP. Also on the executive team are Chief Commercial Officer Brian Thomason, formerly a crude oil trader for Motiva Enterprises LLC, and Chief Operating Officer Mike Truby, formerly the senior VP of operations/engineering at NuStar Energy LP.
“Changing dynamics in the North American petroleum market present attractive opportunities for Edgewater,” said CEO Stephen Smith. “In addition to a large financial commitment, EnCap Flatrock’s significant midstream industry expertise, relationships and successful track record provide a formidable platform to support Edgewater’s growth.”
Of its partnership with EnCap Flatrock, Smith said “...our culture, goals and approach to value creation and risk management are aligned.” When Edgewater was created, Smith said the partners recognized that “societal, technological and policy trends are reshaping the arena in which traditional oil and gas midstream businesses operate. Our team embraces new technologies and environmentally sustainable practices.”
San Antonio, TX-based EnCap Flatrock in November made a similar investment in an Ironwood Midstream Energy Partners spinoff to help it acquire oil gathering systems in South Texas. Through its subsidiary Lotus Midstream, EnCap Flatrock also is sponsoring the 1 million b/d Wink-to-Webster pipeline being developed in the Permian Basin, and it is backing Cogent Midstream LLC to develop a residue natural gas pipeline in the Permian Midland sub-basin.
“Our partnership with Stephen, Brian and Mike is illustrative of our strategy of supporting outstanding leaders with superb track records and integrity,” said EnCap Flatrock managing partner Gregory King.
Mitch Tiras, Locke Lord LLP served as legal adviser to Edgewater, while Gibson, Dunn & Crutcher LLP served as legal adviser to EnCap Flatrock.