Ironwood Midstream Energy Partners II, LLC (Ironwood II) has announced it has closed on the previously announced acquisition of midstream assets located in South Texas. Ironwood II is backed by a US$400 million growth capital commitment from EnCap Flatrock Midstream.
The assets, acquired from Twin Eagle Gardendale Pipeline, LLC, a subsidiary of Twin Eagle Holdings N.A., LLC (Twin Eagle), include the Gardendale and Asherton gathering systems, which together total approximately 150 miles of active crude oil gathering pipelines with connections to multiple long-haul pipelines, allowing access to the US Gulf Coast, Three Rivers and Houston markets. Interconnects include Plains All American Pipeline, Harvest Pipeline Company, NuStar Logistics L.P. and the forthcoming EPIC Crude Oil Pipeline. The Gardendale and Asherton systems span Dimmit and La Salle counties and are supported by long-term dedications totalling more than 124 000 acres. Ironwood II will refer to the combined systems as the Gardendale System.
“We are excited to close on this high-quality set of gathering assets,” said Ironwood II Chairman, President and CEO Mike Williams. “The Gardendale system is located in an area we believe in. It looks to have a long life, great geologic characteristics and positive producer economics, even at current commodity price levels. We look forward to working with existing customers and bringing on new customers as we expand the footprint of the Gardendale system.”
The company also announced that former Twin Eagle Executive Vice President and Chief Operating Officer Danny J. Rea has joined Ironwood II as its chief commercial officer and board member. Since 2015, Mr. Rea has handled both commercial and operational management for Twin Eagle’s midstream assets, which include crude gathering, crude and sand transload terminals, and crude transportation in many of the major US producing basins.
Prior to Twin Eagle, Mr. Rea served as vice president of midstream for Anadarko Petroleum Corporation, where he enjoyed a 32-year career with roles of increasing responsibility. Mr. Rea also served as senior vice president and chief operating officer of the general partner of Western Gas Partners, LP. He holds a Bachelor of Science degree in petroleum engineering from Louisiana Tech University and a Master of Business Administration degree from the University of Houston.
“Danny Rea has established a standout career managing significant midstream assets across the domestic U.S. sector,” said Ironwood Chairman, President and CEO Mike Williams. “Danny’s long experience managing Anadarko’s midstream operations, his hands-on knowledge of this asset and his keen, lifelong dedication to achieving the needs of producers are tremendous advantages for Ironwood II. We are extremely fortunate to be able to add Danny as an integral part of our company as we continue to grow our footprint in South Texas and beyond.”
With the addition of Danny Rea, the members of the Ironwood II leadership team have more than 140 years of collective experience spanning all facets of the midstream value chain. Before forming Ironwood I and Ironwood II, Chief Executive Officer Mike Williams, Chief Financial Officer Justin Johnson and Chief Operating Officer Josh Doramus each built notable energy careers working with blue chip firms including Regency Energy Partners, Texaco, Energy Transfer, Howard Energy Partners, Delhi Gas Pipeline and Aquila.
Legal advisers: transaction with EnCap Flatrock Midstream
Gibson, Dunn & Crutcher LLP served as legal adviser to Ironwood II with partner Beau Stark in the lead role from the firm’s Denver office. Shearman & Sterling LLP served as counsel to EnCap Flatrock Midstream with partner Sarah McLean in the lead role from the firm’s Houston office.
Legal advisers: transaction with Twin Eagle
Gibson, Dunn & Crutcher LLP served as legal adviser to Ironwood II with partner Beau Stark in the lead role from the firm’s Denver office. Sidley Austin LLP represented Twin Eagle with Associate Atman Shukla in the lead role from the firm’s Houston office.
Read the article online at: https://www.worldpipelines.com/business-news/10122019/ironwood-midstream-energy-partners-ii-llc-closes-south-texas-asset-acquisition/