Riverstone to commit up to US$400 million to Meritage

Meritage Midstream Services III, LP, a newly-formed, Denver-based midstream partnership today announced an equity commitment of up to US$300 million from funds managed by energy private equity firm Riverstone Holdings, LLC (Riverstone) to pursue midstream opportunities in Western Canada’s emerging resource plays. The initial Riverstone commitment of US$100 million is comprised US$67 million from Riverstone Global Energy and Power Fund VI (Fund VI) and US$33 million from Riverstone Energy Limited (REL).

Meritage III is led by Chairman and Chief Executive Officer, Steven B. Huckaby and President, Nicholas O. Thomas, industry veterans who have successfully established and led multiple midstream entities, including Meritage Midstream Services II, LLC (Meritage II), an existing Riverstone Global Energy and Power Fund V investment. Meritage II provides oil and gas producers in the Powder River Basin with a full range of midstream services including natural gas gathering, compression, treating and processing; NGL treating and transportation; and crude oil gathering, handling and transportation.

“We are excited to expand our relationship with Riverstone and look forward to developing another midstream company together,” said Steve Huckaby, Chairman and Chief Executive Officer of Meritage II and III. “We plan to build on our long-standing tradition of forging strong, strategic partnerships with oil and gas producers. Our goal is to create a leading Western Canada-focused midstream company that provides the flexibility and optionality producers need to bring their hydrocarbon products from the wellhead to the most profitable markets.”

Baran Tekkora, partner at Riverstone, said, “Our significant equity commitment to Meritage III reflects our confidence in Steve, Nick and the team they have assembled, as well as the opportunity set we see in Western Canadian midstream. We are excited to continue the Riverstone/Meritage partnership and look forward to Meritage’s continued success in the midstream industry.”

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10042015/riverstone-to-commit-up-to-us400-million-to-meritage/