Ironwood Midstream Energy Partners II Forms with $400 Million Equity Commitment from EnCap Flatrock Midstream
Ironwood Midstream Energy Partners announced Nov. 12 the formation of Ironwood Midstream Energy Partners II LLC (Ironwood II). The company is supported by an initial capital commitment of $400 million from EnCap Flatrock Midstream and management.
Ironwood II is an independent energy company focused on the development of midstream infrastructure for oil and gas producers working in shale plays across North America. Ironwood II is pursuing greenfield projects and acquisition opportunities, with a focus on opportunities in Texas.
Ironwood II also announced it has entered into a binding agreement to purchase midstream assets in South Texas currently owned and operated by Twin Eagle Gardendale Pipeline LLC , a subsidiary of Twin Eagle Holdings N.A. LLC. The transaction is expected to close in December 2019. Ironwood II will acquire Twin Eagle’s Gardendale and Asherton gathering systems, which together currently include 137 miles of active crude oil gathering pipeline with connections to multiple long-haul pipelines, allowing access to the U.S. Gulf Coast, Three Rivers and Houston markets. Interconnects include Plains All American Pipeline, Harvest Pipeline Co., NuStar Logistics LP and the upcoming EPIC Crude Oil Pipeline. The Gardendale and Asherton systems span Dimmit and La Salle counties and are supported by long-term dedications totaling more than 124,000 acres.
At closing, Twin Eagle executive vice president and chief operating officer Danny Rea will join Ironwood II as chief commercial officer. Rea joined Twin Eagle in 2015. His responsibilities at Twin Eagle include both commercial and operational management of the company’s midstream assets. Prior to Twin Eagle, Rea served as vice president of midstream for Anadarko Petroleum Corp. He also served as senior vice president and chief operating officer of the general partner of Western Gas Partners LP.
“I’ve known and worked with EnCap Flatrock’s founder Bill Waldrip for three decades,” said Ironwood II chairman, president and CEO Mike Williams, who also holds the same title at Ironwood Midstream I. “The mutual trust and respect we share is an important foundation for a business partnership. Our values are aligned and so is our approach to creating value in the midstream sector. Ironwood II couldn’t ask for a better sponsor.”
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