[Context: On May 2, Whitewater Midstream, backed by Denham Capital and Ridgemont Equity Partners, announced that a subsidiary of MPLX and an affiliate of Targa Resources would join WPX Energy as joint venture partners for the Delaware Basin Agua Blanca pipeline. Further details and related links are below.]


Joint Venture: Whitewater Midstream

WhiteWater Midstream Adds Strategic Partners and New Commitments to Its Delaware Basin Agua Blanca Pipeline

AUSTIN, Texas–May 02, 2018–(BUSINESS WIRE)–WhiteWater Midstream today announced the execution of multiple transportation and interconnect agreements for its Delaware Basin Agua Blanca pipeline, a joint venture between WhiteWater and WPX Energy. In conjunction with those agreements, MarkWest Energy Partners, L.P., a wholly owned subsidiary of MPLX LP, and an affiliate of Targa Resources Corp. will join WhiteWater and WPX Energy as joint venture partners in the Agua Blanca pipeline. Approximately 80% of capital expenditures will be funded with project level debt. In addition to the agreements with its new partners, WhiteWater has entered into long-term transportation service agreements with two premier Delaware Basin producers in Culberson County.

Agua Blanca now has over 1.1 Bcf/d of long-term firm commitments. The pipeline has also continued to expand its connectivity with agreements in place with the following processors: Brazos Midstream, Crestwood Midstream Partners, EnLink Midstream Partners and Medallion Midstream. These agreements will bring total plant processing capacity connected to Agua Blanca to nearly 2.5 Bcf/d, which is expected to increase to 5.0 Bcf/d in the near-term.

“We are extremely excited about our new strategic partners, MPLX and Targa. Both companies are top tier processors that continue to expand services in the Permian Basin. We look forward to growing Agua Blanca and derivative projects with our strong customer base,” said WhiteWater Chief Executive Officer Christer Rundlof.

WhiteWater Midstream will own a 60 percent equity interest in Agua Blanca, with WPX Energy, MPLX and Targa owning an equity interest of 20%, 10% and 10%, respectively in the project.

Inquiries regarding Agua Blanca should be directed to ab@wwm-llc.com.

ABOUT AGUA BLANCA

Agua Blanca is a natural gas residue pipeline servicing the Delaware Basin. The mainline consists of approximately 90 miles of 36″ diameter pipeline and 70 miles of 12″ to 24″ diameter pipeline crossing portions of Culberson, Loving, Pecos, Reeves, Winkler, and Ward counties. The initial capacity is approximately 1.4 Bcf/d. The project is supported by multiple, substantial long-term, firm volume commitments. Agua Blanca will have multiple direct downstream connections including to the Trans-Pecos Header, El Paso Waha, ONEOK West Texas, Kinder Morgan’s Gulf Coast Express and Natural Gas Pipeline Company.

ABOUT WHITEWATER MIDSTREAM

WhiteWater Midstream is an Austin based, independent midstream company that provides transportation services to domestic oil and gas plays. WhiteWater was founded in 2016 and is backed by equity commitments from Denham Capital Management and Ridgemont Equity Partners.

ABOUT WPX ENERGY

WPX is an independent energy producer with core positions in the Permian and Williston basins. WPX’s production is approximately 80 percent oil/liquids and 20 percent natural gas. The company also has an emerging infrastructure portfolio in the Permian Basin.

ABOUT MPLX LP

MPLX is a diversified, growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC) to own, operate, develop and acquire midstream energy infrastructure assets. MPLX is engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; and the transportation, storage and distribution of crude oil and refined petroleum products through a marine fleet and approximately 10,000 miles of crude oil and light product pipelines. Headquartered in Findlay, Ohio, MPLX’s assets consist of a network of crude oil and products pipelines and supporting assets, including storage facilities (tank farms) located in the Midwest and Gulf Coast regions of the United States; 62 light-product terminals with approximately 24 million barrels of storage capacity; storage caverns with approximately 2.8 million barrels of storage capacity; a barge dock facility with approximately 78,000 barrels per day of crude oil and product throughput capacity; and gathering and processing assets that include approximately 5.9 billion cubic feet per day of gathering capacity, 8.2 billion cubic feet per day of natural gas processing capacity and 610,000 barrels per day of fractionation capacity. In addition, MPLX provides fuels distribution services to MPC and owns refining logistics assets consisting of tanks with storage capacity of approximately 56 million barrels as well as refinery docks, loading racks and associated piping.

ABOUT TARGA RESOURCES CORP.

Targa Resources Corp. (NYSE: TRGP) is a leading provider of midstream services and is one of the largest independent midstream energy companies in North America. Targa owns, operates, acquires, and develops a diversified portfolio of complementary midstream energy assets. The Company is primarily engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting, and selling NGLs and NGL products, including services to LPG exporters; gathering, storing, terminaling, and selling crude oil; storing, terminaling, and selling refined petroleum products.

ABOUT DENHAM CAPITAL

Denham Capital is a leading energy-focused global private equity firm with more than $8.4 billion of invested and committed capital across eight fund vehicles. The firm makes direct investments across all stages of the corporate lifecycle. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives.

ABOUT RIDGEMONT EQUITY PARTNERS

Ridgemont Equity Partners is a Charlotte-based middle market buyout and growth equity investor. Since 1993, the principals of Ridgemont have invested over $3.5 billion in 136 companies. The firm focuses on investments of $25 million to $100 million in industries in which it has deep expertise, including basic industries and services, energy, healthcare and telecommunications/media/technology.

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