The midstream merger scene has been relatively quiet this year, but two startups in two months have now entered the deep-pocketed House of Encap Flatrock with nearly $1 billion in fresh capital between them. Reese Energy Consulting today is following the latest news from San Antonio-based Encap, which just announced the formation of Tatanka Midstream. Tatanka (the Lakota word for buffalo) marks the 17th pipeline company to join the private equity firm’s portfolio. With an initial $500 million to acquire and construct pipelines, storage terminals and processing plants, the company is starting from scratch asset-wise. No word yet on where Tatanka has set its sights for natural gas infrastructure. The same goes for oil-based newcomer Edgewater Midstream after scooping up $400 million last month from Encap to build crude oil, refined products and other bulk liquid pipelines. We’ll keep watching. What do you think? Read more about Encap Flatrock and other midstream-focused private equity firms in Reese Midstream Report’s series The Money Backers at www.ReeseMidstreamReport.com. Learn more about REC and our range of midstream expertise at www.ReeseEnergyConsulting.com.
Posted on March 3, 2020