Ironwood Midstream Energy Partners II, LLC has announced that it has “significantly expanded” its crude oil midstream footprint in the Eagle Ford Shale as a result of an asset combination with Nuevo Midstream Dos.
The Ironwood leadership team has assumed management of the Nuevo assets, including approximately 100 miles of crude oil gathering pipeline in the Lavaca, Gonzalez and Fayette counties that feed the Lavaca Terminal, which consists of 300,000 barrels of crude oil storage and a six-bay truck station, Ironwood highlighted. Following the deal, Ironwood now operates approximately 400,000 barrels per day of crude oil throughput capacity and 410 million cubic feet per day of natural gas throughput capacity in the Eagle Ford region, the company noted.
“This strategic combination marks an important step for Ironwood as we continue to expand our midstream infrastructure for Eagle Ford producers, offering safe, consistent and competitive access to premium and growing export and industrial markets along the Texas Gulf Coast,” Ironwood Chairman, President and CEO Mike Williams said in a company statement.
“We are also extremely fortunate to have Randy Ziebarth join our board as part of this merger. The Nuevo team has built an excellent system and we look forward to continuing to operate it with integrity and reliability,” he added in the statement.
Commenting on the deal, Bill Waldrip, the managing partner for EnCap Flatrock, which financially backs both Ironwood and Nuevo, said, “we are excited about the consolidation of these complementary Eagle Ford assets as it further positions them for growth and value creation”.
“The Nuevo team has a strong track record and EFM has enjoyed a long and successful partnership together. The team has built highly valuable relationships in the Eagle Ford and has done an excellent job commercializing these assets,” he added.
“I've personally known Mike and Randy for a very long time, and their collective skill sets, and deep roots and relationships will serve this combined platform well,” Waldrip went on to say.
Ironwood describes itself as an independent energy company that provides a full suite of midstream services to oil and natural gas producers across North America. Headquartered in San Antonio, the company operates approximately 390 miles of crude oil and natural gas pipelines with approximately 245,000 dedicated net acres. Nuevo Midstream Dos is a Houston-based energy company formed in 2015 to design, build and operate midstream systems and deliver service to oil and gas producers across North America.
In 2019, Ironwood closed an acquisition of midstream assets located in South Texas from Twin Eagle Gardendale Pipeline, LLC. In the same year, Nuevo announced the purchase of Republic Midstream, LLC, which owned and operated a crude oil gathering, storage and intermediate transportation system in the Eagle Ford shale.
According to EnCap Flatrock Midstream’s website, the business is a venture capital firm with a singular focus - identifying, investing in and enhancing the value of great businesses and attractive assets in the midstream sector of North America’s oil and gas industry. The business was founded in 2008 by Flatrock Energy Advisors and EnCap Investments L.P.
To contact the author, email andreas.exarheas@rigzone.com
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