Navigator Energy Services Provides Company Update
DALLAS–(BUSINESS WIRE)–Navigator
Energy Services (Navigator), a full-service midstream solutions
provider based in Dallas, today provided a company update including
additional information surrounding its purchase of Glass Mountain
Pipeline, LLC (GMP), changes to the leadership team, and its renewed
partnership with a fund managed by BlackRock Real Assets.
Glass Mountain Pipeline, LLC
As previously announced by SemGroup
Corporation and NGL
Energy Partners LP, Navigator, in partnership with BlackRock Real
Assets, closed on its purchase of 100% of GMP for a total consideration
of $600 million. GMP is an approximately 215-mile, multi-play crude oil
transportation system located in the STACK/Merge, Granite Wash and
Mississippi Lime plays, delivering crude oil to a one million-barrel
GMP-owned storage facility at Cushing, Oklahoma.
Navigator is currently expanding the GMP system, constructing
approximately 44 miles of additional pipeline further into the STACK
play, and an additional 250,000 barrels of storage capacity. The
expansion is expected to be operational in February 2018. Once complete,
the GMP system will include pipeline capacity of approximately 210,000
barrels of oil per day, and approximately 1.8 million barrels of storage.
In support of the significant volume growth within the STACK/Merge and
Woodford resources plays, Navigator plans to further expand the
footprint and overall capacity of the GMP system. Working with producer
partners, substantial new gathering infrastructure is also anticipated.
The considerable scale of the existing GMP system and its ability to
segregate multiple grades of crude allows Navigator to offer customers a
fulsome, differentiated suite of services to transport and store crude
oil.
Navigator Leadership
Navigator is led by a majority of the same leadership team that
successfully guided the company to a full asset sale to NuStar Energy
L.P. (NuStar) in 2017. The seasoned management team is led by Matt
Vining as chief executive officer, and includes two additions: Nick
Kubala as vice president of engineering, and Vidal Rosa as vice
president of operations.
Kubala brings 10 years of engineering experience in a variety of
different roles to the Navigator team. Prior to Navigator, he was
manager of engineering and construction at Align Midstream LLC, where he
was responsible for the engineering, development, and construction of
Align’s pipeline and processing assets.
Rosa brings more than 20 years of industry experience to the Navigator
team including various roles in operations and business development. He
was formerly the director of operations for Centurion Pipeline LP, where
he was responsible for the management of the entire Centurion pipeline
system and terminals.
BlackRock Real Assets Commitment and Background
A fund managed by BlackRock Real Assets has provided an equity
commitment to Navigator that will support the acquisition of GMP, as
well as future expansions and growth opportunities. This is the fund’s
second partnership with the Navigator management team. The two
organizations previously partnered on the construction of Navigator’s
Big Spring Gateway project (BSG) which was sold to NuStar for $1.5
billion in May 2017.
The BSG system consisted of more than 500 miles of crude oil gathering
and transportation pipelines with deliverability of approximately
550,000 barrels per day; a pipeline gathering system with more than 200
connected producer tank batteries capable of more than 400,000 barrels
per day of pumping capacity; and approximately 1 million barrels of
crude oil storage capacity.
Navigator and BlackRock Real Assets Perspectives
“Navigator is proud to partner with BlackRock Real Assets, a global
leader in energy investments,” said Matt Vining, Navigator chief
executive officer. “As evidenced by the recent Glass Mountain deal, we
are confident that BlackRock’s financial strength paired with our
execution capacity and customer-focused approach to crude oil midstream
services, will expand our existing competitive advantage in the
marketplace and position us to source good investment opportunities
across all points in the commodity cycle.
“From an operations perspective, we are excited about the Glass Mountain
asset and look forward to aggressively building out its footprint under
the same customer-focused foundation on which we have built Navigator’s
reputation,” continued Vining.
“This is our second partnership with the Navigator management team,”
said Mark Saxe, managing director in BlackRock’s Global Energy & Power
Infrastructure group with BlackRock Real Assets. “They have an
outstanding reputation in the producer community as being a responsive,
dynamic and creative group that works tirelessly to provide reliable and
flexible midstream solutions. We look forward to our partnership in
relation to the Glass Mountain system, and are pleased to be able to
offer our clients a very attractive midstream investment opportunity.”
About Navigator Energy Services
Headquartered in Dallas, Navigator provides oil and natural gas
producers with comprehensive midstream services including crude oil and
natural gas gathering, transportation, storage and natural gas
compression and processing. Navigator is focused on domestic midstream
opportunities in both developing and mature producing areas. To learn
more about Navigator, please visit www.navigatorenergyservices.com.
About BlackRock Real Assets
BlackRock Real Assets provides clients access to a distinct range of
outcome-orientated real asset investment strategies – including
infrastructure, real estate and renewable power – spanning the entire
risk / return spectrum. Clients benefit from BlackRock’s global reach
and local on-the-ground expertise, as well as the firm’s market-leading
risk management, technology and analytics capabilities. As of June 30,
2017, BlackRock Real Assets managed nearly $40 billion in invested and
committed client assets, supported by more than 350 professionals across
25 offices in 15 countries.
Contacts
M2H Communications
Meredith Hargrove Howard, 210-737-4478
[email protected]
