Lotus Midstream Secures $400 Million Capital Commitment from EnCap Flatrock Midstream
SUGAR LAND, Texas–(BUSINESS WIRE)–Lotus
Midstream, LLC (“Lotus”), a crude oil logistics provider, announced
today it has secured an initial capital commitment of $400 million from EnCap
Flatrock Midstream (“EFM”) and the Lotus management team. The
company is focused on the organic development of midstream
infrastructure and services necessary to transport crude oil and
condensate from the wellhead to market, including crude gathering,
transportation and storage. Lotus also is pursuing strategic acquisition
opportunities.
Established in early 2018, Lotus Midstream is led by its three founding
partners, who have a successful history of working together in the
energy industry. Lotus CEO Mike Prince, Chief Commercial Officer Emily
Baker and Chief Operating Officer Jen Fontenot have more than 55 years
of combined energy industry experience. Prior to establishing Lotus,
they worked together for five years as key members of the business
development team at Sunoco Logistics Partners L.P. (now Energy Transfer
Partners, L.P.), where they executed projects and acquisitions in excess
of $2 billion.
CEO Perspective
“We look forward to building Lotus Midstream with a focus on high growth
areas in the Permian Basin and the Midcontinent, where we see multiple
opportunities and have an established track record, a thorough knowledge
base and strong relationships,” Lotus CEO Mike Prince said. “We are
excited to have EnCap Flatrock Midstream’s support in this new venture.
EFM is the best in the business — an experienced, strategic investor
with an outstanding 10-year record of success and a vision that is
aligned with ours. Their commitment gives us the financial strength we
need to execute our business plan."
From EnCap Flatrock Midstream
"We are extremely pleased to be partnering with the Lotus team,” said
EnCap Flatrock Midstream Managing Partner Greg King, a member of the
Lotus board of directors. “Mike, Emily and Jen are recognized leaders in
crude oil logistics with outstanding reputations in the producer
community and impressive commercial and operational skills. They
understand that midstream success begins with upstream success and have
a long-term plan that is focused on creating value for their customers.
We look forward to supporting the company as it pursues its strategy."
Legal Advisers
Lotus Midstream was advised by former Sunoco Logistics General Counsel
Kathleen Shea-Ballay. Matthew Falcone with Vinson & Elkins LLP’s Houston
office also provided legal counsel to Lotus Midstream. EnCap Flatrock
Midstream was advised by Thompson
& Knight LLP, with partner Sarah McLean leading the team from
the firm’s Houston office.
About Lotus Midstream, LLC
Based in Sugar Land, Texas, Lotus Midstream is an independent energy
company focused on the organic development of midstream infrastructure
and services necessary to transport crude oil and condensate from the
wellhead to market. Lotus also is pursuing strategic acquisition
opportunities. The company’s mission is to leverage the management
team’s thorough understanding of the crude oil value chain to identify
optimal markets for supply and demand to maximize producer
netbacks. Lotus Midstream is backed by a $400 million capital commitment
from EnCap Flatrock Midstream. For more information please visit www.lotusmidstream.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, 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, 303-433-4397, x101
Mobile:
303-507-0510
[email protected]
