Commitments

Costar Midstream LLC and Energy Spectrum Partners VI (ESP VI) have partnered to acquire gas processing assets in the Granite Wash area of the Texas and Oklahoma Panhandle. Costar said it plans to build a “sizable” midstream business focusing on gathering and processing assets that can be acquired and developed. This is the first portfolio investment for ESP VI, which is a $998.7 million private equity fund focused on midstream infrastructure. Energy Spectrum has more than $2.3 billion of capital under management. ESP VI, the firm’s most recent fund, closed recently with commitments of $998.7 million. Recently privately held Crestwood Midstream Partners LP completed an acquisition of midstream assets in the Granite Wash (see Shale Daily, April 5).

Houston explorer Sheridan Production Partners LLC has raised $1.8 billion of new equity commitments that it plans to use to complement its portfolio of assets in Oklahoma, Texas and New Mexico. Sheridan Production Partners II, the second private offering of limited partner interests, was oversubscribed and reached its hard cap, company officials said. Since its formation in 2006 by Sheridan Management and Warburg Pincus, the partnership said it has raised more than $3 billion in equity through private placements of its two investment vehicles (see NGI, Oct. 5, 2009; Aug. 13, 2007).

Meritage Midstream Services has completed and begun flowing gas on the Fasken Ranch lateral pipeline, which is an extension of the company’s Eagle Ford Escondido Gathering System in Webb County, TX.

Natural gas futures market weakness continued to reign on Monday as the prompt-month contract recorded a two-month low before closing out the regular session at $4.309, down 15.8 cents from Friday’s finish.

Acadian Gas LLC has contracted with a shipper to transport gas on its Haynesville Extension pipeline, growing the total capacity commitments on the project, now under construction, by 200 MMcf/d, Acadian’s owners said last week.

Acadian Gas LLC has contracted with a shipper to transport gas on its Haynesville Extension pipeline, growing the total capacity commitments on the project, now under construction, by 200 MMcf/d, Acadian’s owners said Tuesday.

Enterprise Products Partners LP and Duncan Energy Partners LP said they have received additional firm transportation commitments from shippers that are sufficient to support expanding the capacity of their recently announced 249-mile Haynesville Extension into northwest Louisiana to 2.1 Bcf/d. They said they have ordered 42-inch diameter pipe, which is larger than what was originally planned.

The New York Mercantile Exchange (Nymex) Monday said it was backing off earlier commitments to implement hard position limits for certain financially settled natural gas contracts from the end of September, noting that the Commodity Futures Trading Commission (CFTC) is delaying implementation of position limits on comparable contracts under its rulemaking on Exempt Commercial Markets (ECM).

Kayne Anderson Capital Advisors LP has closed its fifth private equity energy fund with total commitments of $820 million. The Houston-based fund has invested in more than 50 energy companies since 1998. Like prior funds, the new fund will invest in “early to mid-stage” North American oil and gas companies with typical investments ranging from $20 million to $150 million, officials said. Previous investments by Kayne Anderson have included Millennium Midstream Partners LP (see Daily GPI, Sept. 17, 2008) and Crestwood Midstream Partners LLC (see Daily GPI, June 26, 2008).