Edgewater Midstream is seeking to build crude oil, refined products and other bulk liquid pipelines.
The company plans to use the $400 million to buy, build and operate pipelines and storage terminals in petroleum trading hubs and demand centers in North America where development in the shale basins in Texas and elsewhere has allowed the United States to grow production and exports.
“Changing dynamics in the North American petroleum market present attractive opportunities for Edgewater,” the company’s CEO Stephen Smith said in a statement. Joining Smith at Edgewater are former Motiva Enterprises executive oil trader Brian Thomason and Mike Truby, a former senior vice president with the San Antonio pipeline company NuStar Energy.
“When forming Edgewater, we recognized that societal, technological and policy trends are reshaping the arena in which traditional oil and gas midstream businesses operate,” Smith said. “Our team embraces new technologies and environmentally sustainable practices.”
Headquartered in San Antonio with offices in Oklahoma City and Houston, EnCap Flatrock Midstream manages $9 billion for a broad group of institutional investors. The private equity firm is currently making commitments to new management teams from EFM Fund IV, a $3.25 billion fund.
