Cardinal Midstream III Announces the Iron Horse System, a New Natural Gas Gathering and Processing System Serving Oklahoma’s SCOOP/STACK/Merge Play

• Initial plans for Cardinal’s Iron Horse System call for more than 100
  miles of gas gathering pipeline, multiple compressor stations and a
  state-of-the-art cryogenic processing plant with the capacity to
  process 200 million cubic feet of natural gas per day (MMcf/d).

DALLAS–(BUSINESS WIRE)–Cardinal
Midstream III, LLC (“Cardinal III”)
announced today that it is developing the Iron Horse System, a new
natural gas gathering and processing system designed to serve producers
working in Oklahoma’s SCOOP/STACK/Merge play. Located in Oklahoma’s
Anadarko Basin, the liquids-rich play targets multiple benches within
the Woodford and Mississippian pay zones, with upside from additional
horizons.

Construction of the gathering system is underway, and Cardinal expects
to commission the system’s first natural gas processing plant in the
third quarter of 2018. The Iron Horse System is anchored by a long-term
acreage dedication from Travis Peak Resources, LLC. Cardinal III is in
discussions with other producers in the area to bring gas onto the Iron
Horse System. Supported by a capital commitment of $250 million from EnCap
Flatrock Midstream, Cardinal III is the third company the Cardinal
management team has formed in partnership with EnCap Flatrock Midstream
and follows the previous successes of Cardinal Midstream I and Cardinal
Midstream II.

“The team at Cardinal has decades of proven midstream experience, a deep
understanding of producer needs and a strong track record of rapid,
reliable execution. We have great confidence in Cardinal and look
forward to a long, productive relationship,” said Travis Peak President
and CEO Jim Addison.

“Our predecessor company, Cardinal I, began working in Oklahoma in 2010,
so this is a homecoming for us. The drilling results and production
growth in the SCOOP/STACK/Merge are very exciting. We are seeing more
producers move additional rigs into this prolific area because of its
compelling economics and improving results. We are committed to meeting
operators’ growing needs across the play with a rapid build-out of our
system,” said Cardinal Chairman and CEO Doug Dormer. “Our business
strategy has always centered on our relationships with our customers. We
understand that our success is driven by the success of those we serve.
To that end, we are working tirelessly to enhance value by building
infrastructure that maximizes netbacks and provides access to multiple
markets.”

Iron Horse System Details

Cardinal’s initial Iron Horse System will span Canadian, Grady, Caddo
and McClain counties. The first phase of the system will consist of more
than 100 miles of high- and low-pressure natural gas gathering pipeline,
multiple compressor stations and the Iron Horse cryogenic gas processing
plant with the capacity to process 200 million cubic feet of natural gas
per day (MMcf/d). The team at Honeywell’s UOP Russell division designed
and fabricated the plant to meet Cardinal’s requirements for an
efficient and predictable installation schedule, reliable runtime and
increased NGL recoveries from the area’s gas stream.

Located in Grady County, the Iron Horse Plant site is designed to
accommodate additional expansions that would bring total processing
capacity to 600 MMcf/d to serve production growth.

About Cardinal Midstream

Founded in 2008, Cardinal is focused on natural gas and crude oil
gathering, natural gas processing, centralized compression facilities,
condensate stabilization, vapor recovery and natural gas
treating. Cardinal is supported by capital commitments from EnCap
Flatrock Midsteam. Cardinal is based in Dallas and has offices in
Mustang, Oklahoma; Kingwood, Texas; and Galeton, Pennsylvania. Visit www.cardinalmidstream.com
for more information.

About EnCap Flatrock Midstream

EnCap Flatrock Midstream provides value-added growth capital to proven
management teams focused on midstream infrastructure opportunities
across North America. The firm was formed in 2008 by a partnership
between EnCap
Investments L.P. and Flatrock Energy Advisors, LLC. Based in San
Antonio with offices in Oklahoma City and Houston, the firm manages
investment commitments of nearly $9 billion from a broad group of
prestigious institutional investors. EnCap Flatrock Midstream is
currently making commitments to new management teams from EFM Fund IV, a
$3.25 billion fund. For more information please visit www.efmidstream.com.

Contacts

TEN|10 Group
Casey Nikoloric
303.507.0510 m
303.433-4397 o
[email protected]