Tradition Midstream LLC said it has secured $100 million in equity financing to develop infrastructure across North America, with an initial focus on unconventional plays in Texas, Oklahoma and Louisiana.
EnCap Flatrock Midstream anted up the financing for The Woodlands, TX-based operator to focus on midstream acquisitions, expansions and greenfield development, it said. Plays now being eyed include the Eagle Ford Shale, as well as the Eaglebine, Mississippian Lime and Tuscaloosa Marine Shale formations. In July 2011 Tradition received a $200 million capital infusion to expand onshore midstream infrastructure from Denham Capital (see Shale Daily, July 28, 2011).
“We’ve assembled a multi-dimensional team with strong backgrounds in pipeline and facility construction, operations, right-of-way acquisition, gas supply and marketing,” said President Don Brown.
EnCap Flatrock currently is investing through the $1.75 billion EnCap Flatrock Midstream Fund II. EnCap Flatrock’s portfolio includes Caballo Energy, Caiman Energy II, Cardinal Midstream, EagleClaw Midstream, Lucid Energy Group, Nuevo Midstream and Rangeland Energy.
Tradition board member William R. Lemmons Jr., also one of EnCap’s three managing partners, said the “depth and breadth” of Tradition’s management “will be a tremendous asset to producers. They understand how to execute at every level of the midstream business.”
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