Cardinal Midstream III forms with $250 Million Equity Commitment from EnCap Flatrock Midstream

DALLAS–(BUSINESS WIRE)–#midstream—Cardinal
Midstream (“Cardinal”) today announced the formation of Cardinal
Midstream III, LLC (“Cardinal III”). Cardinal III is backed by a $250
million equity commitment from EnCap
Flatrock Midstream (“EnCap Flatrock”) to support the continued
growth and development of Cardinal’s core business. Cardinal III will
pursue midstream acquisitions and development opportunities in both
conventional and unconventional resource plays across North America.

Cardinal is led by Chairman and CEO Doug Dormer, President and CFO Tim
Roberts, Executive Vice President and COO T. D. Baskin, and Executive
Vice President and CCO Mark Ward. The company’s senior leadership team
has been directly involved in the acquisition, development and operation
of more than $1.3 billion in midstream assets. 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 proud to announce its third partnership with EnCap
Flatrock. They have been a great partner and have supported us through
multiple industry cycles,” said Cardinal Midstream Chairman and CEO Doug
Dormer. “We are excited about the prospects to grow our gathering
footprint in Tioga County, Pennsylvania, as well as the opportunity to
enter other basins across the country. With a highly experienced team
and a successful operational track record, Cardinal has established a
solid platform that is well positioned for growth.”

“We are very pleased to continue our long and extremely successful
relationship with Cardinal Midstream by supporting the formation of
Cardinal III,” said EnCap Flatrock Managing Partner and Founder Billy
Lemmons. “Cardinal has a great track record, driven by a deep
understanding of producer needs and how to safely execute on them with
speed and operational excellence.”

On March 6, 2017, Cardinal Midstream II, LLC (“Cardinal II”) closed on
the sale of its interest in Cardinal PA Holdings, LLC (“Cardinal PA”) to
a subsidiary of Energy Transfer Partners, L.P. Cardinal PA provides
natural gas and condensate gathering, compression and condensate
stabilization services in the Marcellus Shale of southwest Pennsylvania.
Cardinal II continues to own and operate a natural gas gathering system
in the dry gas Utica Shale of north central Pennsylvania.

Legal Advisers

Cardinal was advised by Dallas law firm Mack Matheson & Marchesoni PLLC.
The team was led by partners Tim Mack and Scott Matheson. Thompson &
Knight LLP represented EnCap Flatrock Midstream with partner Sarah E.
McLean leading the legal team from the firm’s Houston office.

About Cardinal Midstream

Cardinal was founded in 2008 and has successfully invested more than
$450 million in private capital since inception. 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 based in Dallas and has offices in
Kingwood, Texas, and Cranberry Township, 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. EnCap Flatrock is
based in San Antonio with offices in Oklahoma City and Houston. The firm
manages investment commitments of nearly $6 billion from a broad group
of institutional investors. EnCap Flatrock currently is making
commitments to new management teams from EFM Fund III, a $3 billion
fund. Please visit www.efmidstream.com
for more information.

Contacts

TEN|10 Group
Casey Nikoloric
303.433.4397, x101 o
303.507.0510
m
[email protected]