Warren Equity Partners and Multifuels, L.P. have Established a New Midstream Oil and Gas Company, Houston-Based Multifuels Midstream Group
Warren Equity Partners, a middle market private equity firm, announced
today that it has partnered with Multifuels, L.P. to build a midstream
pipeline platform. As part of the transaction, Multifuels, L.P. is
contributing an existing natural gas pipeline that supplies a utility
service area in Texas, and Warren Equity is contributing approximately
$20 million of cash and equity commitments.
Multifuels Midstream Group (the “Company”) will own, operate and develop
midstream projects in North America, with an emphasis on lateral
distribution pipelines. These laterals will transport natural gas from
main lines to end users, such as utilities and petrochemical plants,
under long-term contracts that are not exposed to fluctuations in the
price of oil and gas.
The Company is headquartered in Houston, Texas and will be led by a
seasoned management team that is highly experienced in the development
of pipelines, gathering systems and storage assets in the oil and gas
industry. Randy Gibbs will be the CEO of the Company, and Dick Robinson,
Gil Muhl and Jim Ducote will form the remainder of the management team.
The Company will execute on an existing portfolio of development
projects which capitalizes on the U.S. trend toward increased
utilization of natural gas in power plants, petrochemical plants and
industrial complexes; growth in the number of residential households
accessing natural gas through local distribution companies; and
increased export opportunities through LNG facilities. The Company’s
projects are developed under long-term contracts with strong
creditworthy counterparts.
Multifuels’ CEO, Randy Gibbs, commented, “Warren Equity shares our
vision for the future of Multifuels, and we are enthusiastic about this
next chapter in our organization. We look forward to working with Warren
Equity to pursue what we view as a tremendous opportunity in the energy
space.”
Steven Wacaster, a Partner at Warren Equity, commented, “We are excited
to partner with the Multifuels team. In addition to the operating
pipeline asset the Company will own at close, the team has developed a
unique set of project opportunities that capitalize on strong trends in
this environment with an excellent risk/return profile.”
About Multifuels Midstream Group
Headquartered in Houston, Texas, Multifuels Midstream Group owns,
operates and develops midstream assets in the oil and gas sector with a
focus on lateral distribution gas pipelines in North America.
About Warren Equity Partners
Warren Equity Partners is a private equity firm that invests in small
and middle market operating companies primarily in North America. The
firm invests in established companies where additional capital and
operating resources can accelerate growth, targeting product and
services companies in the industrial, infrastructure, energy and
building sectors. Warren Equity invests in the form of buyouts, growth
equity, and recapitalizations. For more information, please visit www.warrenequity.com.
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Copyright Business Wire 2016
Source: Business Wire
(January 22, 2016 - 12:28 PM EST)
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