Evolution Midstream to Acquire Rowdy Gas Gathering System in Wyoming’s Powder River Basin

DENVER–(BUSINESS WIRE)–Evolution
Midstream, LLC (“Evolution”) announced today that the company has
entered into a binding agreement to purchase the Rowdy Gas Gathering
System from Lucid
Energy Group (“Lucid”). The Rowdy system is located in Wyoming’s
Powder River Basin and serves oil and gas producers in Campbell,
Converse and Johnson counties. The Rowdy system is comprised of
approximately 1,000 miles of gas gathering lines and 43,700 horsepower
of compression. The transaction is expected to close by July 1, 2017.

“We see a significant opportunity in the Powder River Basin, where there
is increasing activity and focus by producers seeking entry into an
exciting, stacked play,” Evolution CEO Raj Basi said. “The acquisition
of the Rowdy System is the first step in developing our comprehensive
vision for gas gathering, treating and processing in the area.”

The extensive footprint of the acquired assets, located in the heart of
the Powder River Basin, provides the foundation for additional growth
opportunities. Evolution plans to embark on an extensive capital program
to increase system capacity and reach, offering producers of all sizes a
comprehensive gas gathering and processing solution, as well as crude
gathering services.

“Our focus has always been to provide reliable, cost-effective and
flexible midstream solutions for producers’ gas in the Rockies, and the
Powder River Basin is an exciting place to start,” said Senior Vice
President of Business Development Preetam Dandapani. “We are looking
forward to working with the producers currently served by the Rowdy
System and will continue expanding our footprint and capabilities to
meet the needs of others in the area.”

Advisers

Evolution was advised by Buchanan Ingersoll & Rooney, P.C. Lucid was
represented by Vinson & Elkins LLP. Jefferies LLC served as Lucid’s
exclusive financial adviser.

About Evolution Midstream, LLC

Based in Denver and founded in 2015, Evolution Midstream is an
independent midstream company serving oil and gas producers operating in
unconventional shale plays in the Rocky Mountain region. Evolution’s
vision of success is built on fostering strong, long-term relationships
with all constituents and finding creative ways to improve producer
netbacks. Evolution cultivates these relationships based on trust,
accountability and fairness to ensure that all stakeholders are heard,
valued and served. Capabilities include in-field natural gas gathering,
compression, treating and processing services; innovative NGL solutions;
and crude oil gathering, transportation and storage. Evolution is backed
by venture capital commitments from EnCap Flatrock Midstream. For
more information please visit www.evolutionmidstream.com.

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

Evolution Midstream
Raj Basi, CEO
[email protected]