[Context: On July 12, Tall Oak Midstream III announced its formation and receipt of a $200m equity commitment from EnCap Flatrock. Its predecessor, Tall Oak Midstream II, was focused on the Northwest STACK and sold to EnLink for $1.55bn. Further details and related links are below.]
Tall Oak Midstream Announces Formation of Tall Oak Midstream III, LLC
The founders of Tall Oak Midstream (“Tall Oak”) have formed Tall Oak Midstream III, LLC (“Tall Oak III”) with an initial equity commitment of $200 million from EnCap Flatrock Midstream and management.; Tall Oak III will pursue midstream opportunities across North America outside the Northwest portion of Oklahoma’s STACK play.
OKLAHOMA CITY–July 12, 2017–(BUSINESS WIRE)–Tall Oak Midstream, LLC (“Tall Oak” or “the Company”) today announced that its founders have formed Tall Oak Midstream III, LLC (“Tall Oak III”) with an initial equity commitment of up to $200 million from private equity firm EnCap Flatrock Midstream (“EnCap Flatrock”) and Tall Oak management. In January 2016, Tall Oak sold its first venture to EnLink for $1.55 billion. At that time, the Company already had formed Tall Oak Midstream II, LLC (“Tall Oak II”). Tall Oak II will continue to focus on operating and expanding its midstream assets in the Northwest STACK play. The new company, Tall Oak III, will pursue midstream opportunities across North America outside the Northwest STACK. The formation of Tall Oak III continues to leverage the management team’s deep midstream experience and successful track record and builds on Tall Oak’s strong relationships with oil and gas producers.
The Tall Oak II and Tall Oak III companies are led by Tall Oak’s four founders: President and CEO Ryan Lewellyn; Chief Commercial Officer Carlos P. Evans; Chief Financial Officer Max J. Myers; and Chief Operating Officer Lindel R. Larison. The $200 million equity commitment to Tall Oak III is the third commitment EnCap Flatrock has made to the Tall Oak management team and brings total financing for Tall Oak II and Tall Oak III to more than $600 million.
“EnCap Flatrock Midstream is an outstanding financial partner, and our ongoing relationship has been extremely successful. Our collaboration has allowed us to deliver world-class midstream solutions and service to our customers. We look forward to building on the success we’ve had together and anticipate further announcements about Tall Oak III in the near future,” said Tall Oak President and CEO Ryan D. Lewellyn.
From EnCap Flatrock Midstream
“EnCap Flatrock is proud to partner again with the Tall Oak management team by supporting Tall Oak III,” said EnCap Flatrock Managing Partner Dave Kurtz, a member of both the Tall Oak II and Tall Oak III boards of directors. “Tall Oak’s management team is effective at producing results for its customers in a very short period of time. They perform at the highest level every single day and come in on time and on budget with creative solutions that provide producers with optionality and the highest possible netbacks.”
Paul Hastings LLP served as legal counsel to Tall Oak Midstream with Jimmy Vallee, a partner in the firm’s Houston office, in the lead role. Thompson & Knight LLP represented EnCap Flatrock Midstream with partner Sarah E. McLean leading the legal team from the firm’s Houston office.
About Tall Oak Midstream II, LLC and Tall Oak Midstream III, LLC
Based in Oklahoma City, the Tall Oak companies are dedicated to bringing a fresh perspective to serving oil and gas producers with a full suite of midstream services. Core capabilities include natural gas gathering, compression, treating and processing; crude oil gathering and transportation; condensate and water handling; and product marketing solutions.
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.