Nuevo Dos secures a US$400 million commitment from EnCap

Nuevo Midstream Dos, LLC, a full-service midstream provider based in Houston, announced today that the company has secured an initial equity commitment of $400 million from EnCap Flatrock Midstream and the Nuevo Dos management team. Nuevo Dos was formed earlier this year by the team that led its successful predecessor company, Nuevo Midstream, LLC (Nuevo), which was also backed by EnCap Flatrock. After developing a significant midstream footprint in the Delaware Basin, Nuevo was sold to Western Gas Partners LP in October 2014 for US$1.5 billion.

Nuevo Dos is pursuing organic and acquisition opportunities across North America. The members of the Nuevo Dos management team have significant experience in developing, constructing and operating strategic midstream assets and in oil, gas and liquids marketing. Expertise includes natural gas gathering, compression, treating, processing and transportation; fractionation and NGL storage and takeaway; and the gathering, storage and transportation of crude oil and condensate.

“EnCap Flatrock has been an outstanding, value-added equity partner, and we look forward to building another successful midstream company with them,” said Nuevo Dos President and CEO Randy Ziebarth. Mr. Ziebarth served as Nuevo’s Senior Vice President and Chief Operating Officer. He succeeds Jay Lendrum as President and Chief Executive Officer. Mr. Lendrum now serves as the Chairman of Nuevo Dos.

“We have a long-standing and productive relationship with the Nuevo Dos team,” said EnCap Flatrock Managing Partner Dennis Jaggi, who also serves as a member of the Nuevo Dos board of directors. “The entire team has an outstanding reputation in the producer community for its execution capabilities and devotion to service, which produces strong results for customers. We are excited to partner with them for a second time.”

Nuevo Dos was advised by Locke Lord LLP. EnCap Flatrock was advised by Thompson & Knight LLP.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10042015/nuevo%20secures%20a%20us400%20million%20commitment%20from%20encap/