In the latest of several joint investments, JPMorgan Partners (JPMP), a private equity affiliate of JPMorgan Chase & Co., and the principals of Bear Cub Energy, LLC, Thomas J. Edelman and Robert J. Clark, has purchased the East Texas gas gathering and processing assets of Hanover Compressor for $50 million.

The two investors have formed Madisonville Gas Processing LP to acquire the assets, which are located in Madison County, TX, adjacent to the Madisonville Gas Field, which is about 100 miles north of Houston. JPMP and Bear Cub anticipate providing significant growth capital to expand the processing capacity at the site and pursue add-on acquisitions and other growth opportunities in the midstream sectors.

“This initial investment will allow Madisonville to add significant processing capacity at the field, as well as positioned it to be a larger player in the midstream sector,” said Christopher Behrens, a partner JPMP. This is JPMP’s third investment with the principals of Bear Cub. The first two investments were Bear Paw and Patina Oil & Gas (see Daily GPI, Jan. 25, 2001; Dec. 29, 1999; Dec. 17, 2004).

Bear Cub Chairman Thomas J. Edelman said, “Despite the rapid run-up in the price of midstream assets, we remained convinced that opportunities for profitable investment in the sector continue to exist if one is able to work closely with producers and can materially enhance operating efficiency.”

JPMP has more than $11 billion in capital under management. Bear Cub is a privately held company engaged in gas gathering and processing and crude oil and liquids marketing.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.