Investment funds managed by Morgan Stanley Energy Partners, part of Morgan Stanley Investment Management, and Houston, Texas-based Durango Investment Holdings LLC 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.”
