3 August 2011 – Vinson & Elkins represented EQT Infrastructure Limited in the acquisition of a 70% stake in Peregrine Midstream Partners, LLC, a natural gas storage company. EQT Infrastructure’s investment will allow Peregrine Midstream to fund the completion of Ryckman Creek, the Company’s first storage facility and one of several gas storage projects in Peregrine Midstream’s portfolio. A copy of EQT Infrastructure’s press release is below.
V&E partners David Cohen (M&A) and Mark Spradling (Energy Transactions and Projects) led the deal for EQT Infrastructure with assistance from partners Sean Becker (Labor and Employment) and David Peck (Tax), and M&A associates, Brian Rosenblatt, Nitin Sathe plus Energy Transactions and Projects associates Danielle Mangrum, Brian Rose and Natara Williams.
EQT Infrastructure acquires Peregrine Midstream Partners, a natural gas storage company in the United States
· Peregrine Midstream Partners’ initial gas storage project is Ryckman Creek, an existing depleted oil and gas reservoir that will be converted into a gas storage facility
· The Company is uniquely positioned to leverage existing compression and pipeline infrastructure at Ryckman Creek to serve the natural gas market hub at Opal
· The initial multi-cycle working gas capacity of Ryckman Creek has been fully contracted and the facility is expected to be expanded to 35 BCF of storage capacity
· Peregrine Midstream Partners has a strong and operationally focused management team with extensive gas storage and mid-stream oil and gas experience
EQT Infrastructure has acquired 70% of Peregrine Midstream Partners, LLC (“Peregrine Midstream” or the “Company”) headquartered in Houston, Texas, from the management team and other existing investors. EQT Infrastructure’s investment will allow Peregrine Midstream to fund the completion of Ryckman Creek, the Company’s first storage facility and one of several gas storage projects in Peregrine Midstream’s portfolio.
Peregrine Midstream was co-founded in 2009 by John Hopper and Jeff Foutch, Chief Executive Officer and Chief Commercial Officer, respectively. They are joined on the senior management team by former management team members from Falcon Gas Storage Company, which they also co-founded. The management team is a leader in the midstream industry and has successfully completed and operated gas storage projects in Texas while also initiating projects in Alabama and New York.
Peregrine Midstream’s initial storage project, Ryckman Creek, is located in the state of Wyoming in an oil and gas producing region of the United States. The Ryckman Creek reservoir previously produced oil and gas for Amoco Production Company from 1976 through 1993. The Federal Energy Regulatory Commission granted the Ryckman Creek facility approval on July 28, 2011 to be converted into a gas storage facility. Peregrine Midstream will during the coming years focus on building and expanding the storage facility at Ryckman Creek. When Ryckman Creek begins its storage operation in 2012, it will provide essential gas storage services to markets in the Western and Midwestern United States.
The Ryckman Creek facility will initially offer approximately 18 billion cubic feet (“BCF”) of working gas capacity, all of which is currently under contract. At full capacity, Ryckman Creek will offer 35 BCF of high deliverability multi-cycle working gas storage. The storage facility will utilize existing compression infrastructure and interconnections with four pipelines: Kern River, Questar, Overthrust and Northwest. An interconnection with Ruby Pipeline is planned for 2013.
“Together with EQT Infrastructure and the strong network of Industrial Advisors, we are excited to move forward with the Ryckman Creek project. Natural gas has continued to develop strong momentum as a key form of energy supply in the United States. Peregrine Midstream is well positioned to take advantage of this momentum by providing critical storage infrastructure and services to the natural gas market” says John Hopper, CEO and co-founder of Peregrine Midstream.
“Peregrine’s strong management team and their proven approach to gas storage combines well with strong industry drivers and potential for value creation. The team’s experience from developing other storage projects together with the unique Ryckman Creek asset provides the opportunity to evolve Peregrine Midstream into a major natural gas storage platform,” says Barry Pearl who will become Chairman of the Peregrine Midstream Board of Directors. The new Board of Directors will also include Geoffrey Roberts (board member of Midland Cogeneration Venture and Chairman of RTI), Alan Englehart, Dean Jones, John Hopper and Glen Matsumoto.
Contacts: Johan Hähnel, PR & Communication +46 8 506 55 334EQT Infrastructure
Glen T. Matsumoto, Partner +1 914 607 4502EQT Partners, Investment Advisor to EQT Infrastructure
Jeffrey H. Foutch, CCO +1 713 974 5606Peregrine Midstream Partners
EQT is the leading private equity group in Northern Europe with more than EUR 16 billion in raised capital and multiple investment strategies. Together with a superior network of Industrial Advisors, EQT implements its business concept by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, developing them into leading companies. Development is achieved by applying an industrial strategy with focus on growth. Since inception, EQT has invested EUR 10.4 billion in more than 90 companies and exited more than 40. EQT-owned companies have more than 550,000 employees.
EQT Infrastructure is a EUR 1.2 billion fund (launched 2008) investing primarily in existing infrastructure and has the flexibility to invest globally. Potential targets are basic infrastructure, concession-based infrastructure, social infrastructure and infrastructure-related services.
EQT Partners, acting as investment advisor to the managers of each EQT fund, has more than 100 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.
More information can be found on www.eqt.se (http://www.eqt.se/)
About Peregrine Midstream Partners
Headquartered in Houston, Texas, Peregrine Midstream Partners is a privately-held company founded in 2009 by the former founders and management team of Falcon Gas Storage to pursue development and acquisition opportunities in the midstream energy sector in addition to providing midstream asset management and advisory services. Peregrine’s midstream business model is focused on natural gas storage, transportation and processing; NGL extraction; crude oil and NGL production, storage, handling, marketing and sales in association with HDMC natural gas storage development and operations; and energy commodity risk management.