Morgan Stanley Energy Partners and Durango Midstream Announce Strategic Partnership

HOUSTON–(BUSINESS WIRE)–Investment funds managed by Morgan Stanley Energy Partners
(collectively, “MSEP”), part of Morgan Stanley Investment Management,
and Houston, Texas-based Durango Investment Holdings LLC (“Durango
Midstream” or the “Company”) announced today a strategic partnership
whereby MSEP has made a majority equity investment in Durango Midstream
to support the growth of the Company’s midstream businesses in the
Midcontinent region of the United States. Terms of the transaction were
not disclosed.

Durango Midstream is a leading natural gas gathering, processing and
marketing company providing world-class midstream services to oil and
gas producers in Texas, Oklahoma, and Kansas. The partnership with MSEP
provides the Company with additional resources to upgrade and expand
Durango Midstream’s existing asset base and capabilities. The Company’s
initial growth projects are expected to focus on expansion of its
gathering and processing system in Grady County, Oklahoma to support
producers active in the rapidly growing Merge-SCOOP-STACK plays of
Central Oklahoma.

Robert Lee, Managing Director of Morgan Stanley Energy Partners, said,
“We are delighted to partner with Durango Midstream – given its
exceptional team, strategic asset base and the attractive opportunities
presented by nearby oil and gas activity, the business is uniquely
positioned for growth.”

Durango Midstream is led by Richard A. Cargile, President and Chief
Executive Officer. Mr. Cargile has decades of operating experience in
the midstream business. He most recently served as President of
Midstream Operations at Energy Transfer Partners, L.P. Mr. Cargile said,
“We are excited about our strategic partnership with Morgan Stanley
Energy Partners. Their global network and sterling reputation and their
history of success in the energy business will help us accelerate our
growth plans in the Midcontinent and expand into other leading oil and
gas basins in the United States. We look forward to supporting our
current and future customers with additional midstream infrastructure
and world-class service.”

John Moon, Managing Director and Head of Morgan Stanley Energy Partners,
added, “Morgan Stanley Energy Partners always seeks to partner with
leaders in the field, and Rick and the Durango team exemplify best in
class management. We look forward to shared success in the years to
come.”

About Durango Midstream
Headquartered in Houston, Texas, Durango
Midstream is a leading natural gas gathering, processing, and marketing
company providing world-class midstream services to oil and gas
producers in Texas, Oklahoma, and Kansas. For further information about
Durango Midstream, please contact info@durangomidstream.com.

About Morgan Stanley Energy Partners
Morgan Stanley Energy
Partners, the energy-focused private equity business of Morgan Stanley
Investment Management, is a leading energy private equity platform that
makes privately negotiated equity and equity-related investments in
energy companies located primarily in North America. Morgan Stanley
Energy Partners pursues a differentiated investment strategy, focused on
the buyout and build-up of strategically attractive, established energy
businesses across the energy value chain in partnership with world-class
management teams. For further information about Morgan Stanley Energy
Partners, please visit www.morganstanley.com/im/en-us/capital-seeker/teams/private-equity/energy-partners-team.html.

About Morgan Stanley Investment Management
Morgan Stanley
Investment Management, together with its investment advisory affiliates,
has more than 600 investment professionals around the world and $447
billion in assets under management or supervision as of September 30,
2017. Morgan Stanley Investment Management strives to provide
outstanding long-term investment performance, service, and a
comprehensive suite of investment management solutions to a diverse
client base, which includes governments, institutions, corporations, and
individuals worldwide. For further information about Morgan Stanley
Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global
financial services firm providing investment banking, securities, wealth
management and investment management services. With offices in more than
42 countries, the Firm's employees serve clients worldwide including
corporations, governments, institutions and individuals. For more
information about Morgan Stanley, please visit www.morganstanley.com.

Contacts

Media Relations:
Morgan Stanley Energy Partners
Lauren
Bellmare, 212-761-5303