RiverRock Energy Secures $125 Million Equity Commitment from EnCap Flatrock Midstream

RiverRock Energy

SAN ANTONIO, TX – RiverRock Energy, LLC (“RiverRock”) today announced an initial equity commitment of $125 million from private equity firm EnCap Flatrock Midstream (“EnCap Flatrock”) and management. RiverRock will develop midstream solutions for oil and gas producers and other customers needing crude oil logistics services to gather, store and transport crude oil by pipeline and rail. In addition, RiverRock will provide the necessary infrastructure to handle condensate, fresh and produced water, natural gas liquids and natural gas. The company is pursuing greenfield and acquisition opportunities in emerging resource plays and other producing basins experiencing rapid growth.

RiverRock’s founding partners are President and Chief Executive Officer (CEO) Greg Schmidt, Executive Vice President and Chief Operating Officer (COO) Patrick Eurek and Vice President of Commercial Development Keith Taylor. The management team has more than 85 years of combined midstream segment and other energy industry experience in every aspect of the midstream business and strong, long-standing entrepreneurial relationships with producers, marketers, refiners, traders and other stakeholders in the oil and gas supply chain.

Jones Day represented RiverRock Energy with John M. Saada, Jr., a partner in the firm’s Cleveland office in the lead role. Thompson & Knight LLP represented EnCap Flatrock Midstream with partner Sarah E. McLean leading that firm’s legal team from Thompson & Knight’s Houston office.

CEO Perspective
“I am pleased to announce our partnership with EnCap Flatrock. We are privileged to have EnCap Flatrock Midstream as our partner, and we look forward to building a long-term and productive relationship with the firm,” said RiverRock President and CEO Greg Schmidt. “In previous roles, each of RiverRock’s founding partners was successful in building and sustaining profitable growth by working to understand and meet the needs of our customers. RiverRock was formed with the vision of building a premier midstream services business focused on creating value for its customers by providing logistics infrastructure tailored to meet those needs,” Mr. Schmidt said.

Bill Waldrip, a managing partner at EnCap Flatrock and a RiverRock board member, added that working with a management team as qualified as RiverRock’s was attractive from the beginning. “EnCap Flatrock invests in skilled management teams with a strong business plan, valuable connections and a proven ability to execute. RiverRock has a promising vision and its founders have very impressive track records of creating value in the midstream sector. We’re excited about working with this team and look forward to the evolution of the RiverRock story. As the company achieves successful results, we have the capacity to make additional equity commitments to RiverRock to fund growth.”

Management Team
Greg Schmidt has more than 36 years of domestic and international experience in the energy industry. Prior to forming RiverRock, Mr. Schmidt served for two years as senior vice president of commercial operations at Energy Transfer, where he was responsible for the development of a crude oil midstream business segment. Before joining Energy Transfer, he was vice president of marketing and business development for NuStar Energy, LP and related companies, KANEB Pipe Line Partners and Valero LP. While at NuStar Mr. Schmidt was responsible for development of the pipeline transportation business segment and led its profitable growth for seven years. Prior to NuStar he was with TEPPCO Partners’ upstream business segment for four years in a management role in corporate and business development. From 1977 to 2000, Mr. Schmidt worked for Koch Industries, Inc. in various management roles, including president of two subsidiaries, Koch Sulfur Products Company and Koch Carbon Dioxide Company. He also served in key commercial and corporate roles for several other Koch Industries subsidiaries.                 

Patrick Eurek also holds 36 years of industry experience and brings RiverRock significant knowledge and expertise in crude oil and refined products pipeline and terminal engineering, design and project management, pipeline and terminal operations, products movement, marketing and business development. Prior to RiverRock’s formation, Mr. Eurek served as vice president of business development at NuStar Energy, LP. He led the growth of NuStar's St. James, Louisiana, terminal from approximately 3 million to more than 9 million barrels of crude oil storage and oversaw the construction of two crude oil unit train unloading facilities. Prior to NuStar, Mr. Eurek was project manager for the construction of Plains All American's new build crude oil terminal at St. James. From 1998 to 2005 Mr. Eurek worked for Equilon and Shell Pipeline Companies as director of business development leading various pipeline and terminal projects.

A 15-year industry veteran, Keith Taylor has proven abilities in strategic and business planning, marketing, business development, financial analysis and pipeline operations. Like Mr. Schmidt and Mr. Eurek, Mr. Taylor worked for NuStar and was also responsible for creating new commercial business for the majority of NuStar’s common carrier pipelines. Mr. Taylor’s recognized critical thinking skills led to his selection as a valued member of a multidisciplinary group responsible for NuStar’s long-term strategic planning process. Prior to joining NuStar, he was asset manager for two years with Calpine Corporation. Prior to Calpine, he was with Air Liquide America for three years in various roles within operations and commercial development groups in the large tonnage pipeline segments.

About RiverRock Energy
Headquartered in San Antonio, RiverRock Energy, LLC provides oil and gas producers with midstream solutions including gathering, transportation and storage infrastructure for crude oil, water, natural gas, natural gas liquids and other liquid hydrocarbon products. The company is pursuing greenfield and acquisition opportunities in emerging resource plays and other producing basins across North America.

About EnCap Flatrock Midstream
EnCap Flatrock provides value-added private equity capital to proven management teams focusing on midstream infrastructure opportunities across North America. Founded in 2008 by EnCap Investments, LP and Flatrock Energy Advisors, the firm is based in San Antonio, Texas, and Edmond, Oklahoma, and led by Managing Partners William D. Waldrip, William R. Lemmons Jr., and Dennis F. Jaggi. With more than 100 years of midstream experience, the principals at EnCap Flatrock manage a dedicated professional staff and midstream-focused investment commitments of nearly $3 billion from a broad group of prestigious institutional investors. EnCap Flatrock is currently making new management team commitments and investing out of EnCap Flatrock Midstream Fund II, a $1.75 billion fund. The firm expects to close a third fund at the end of April 2014.


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