DENVER, Colorado – June 5, 2017 – Evolution Midstream, LLC (“Evolution”) announced today that the company has entered into a binding agreement to purchase the Rowdy Gas Gathering System from Lucid Energy Group (“Lucid”). The Rowdy system is located in Wyoming’s Powder River Basin and serves oil and gas producers in Campbell, Converse and Johnson counties. The Rowdy system is comprised of approximately 1,000 miles of gas gathering lines and 43,700 horsepower of compression. The transaction is expected to close by July 1, 2017.
“We see a significant opportunity in the Powder River Basin, where there is increasing activity and focus by producers seeking entry into an exciting, stacked play,” Evolution CEO Raj Basi said. “The acquisition of the Rowdy System is the first step in developing our comprehensive vision for gas gathering, treating and processing in the area.”
The extensive footprint of the acquired assets, located in the heart of the Powder River Basin, provides the foundation for additional growth opportunities. Evolution plans to embark on an extensive capital program to increase system capacity and reach, offering producers of all sizes a comprehensive gas gathering and processing solution, as well as crude gathering services.
“Our focus has always been to provide reliable, cost-effective and flexible midstream solutions for producers’ gas in the Rockies, and the Powder River Basin is an exciting place to start,” said Senior Vice President of Business Development Preetam Dandapani. “We are looking forward to working with the producers currently served by the Rowdy System and will continue expanding our footprint and capabilities to meet the needs of others in the area.”
Evolution was advised by Buchanan Ingersoll & Rooney, P.C. Lucid was represented by Vinson & Elkins LLP. Jefferies LLC served as Lucid’s exclusive financial adviser.
About Evolution Midstream, LLC
Based in Denver and founded in 2015, Evolution Midstream is an independent midstream company serving oil and gas producers operating in unconventional shale plays in the Rocky Mountain region. Evolution’s vision of success is built on fostering strong, long-term relationships with all constituents and finding creative ways to improve producer netbacks. Evolution cultivates these relationships based on trust, accountability and fairness to ensure that all stakeholders are heard, valued and served. Capabilities include in-field natural gas gathering, compression, treating and processing services; innovative NGL solutions; and crude oil gathering, transportation and storage. Evolution is backed by venture capital commitments from EnCap Flatrock Midstream. For more information please visit www.evolutionmidstream.com.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors. EnCap Flatrock is based in San Antonio with offices in Oklahoma City and Houston. The firm manages investment commitments of nearly $6 billion from a broad group of institutional investors. EnCap Flatrock currently is making commitments to new management teams from EFM Fund III, a $3 billion fund. Please visit www.efmidstream.com for more information.