Valiant Midstream Secures Large Arkoma Stack Play Acreage Dedication from Antioch Energy

Valiant Midstream also announces processing capacity expansion

OKLAHOMA CITY (Aug. 23, 2018) Valiant Midstream LLC announced today it has entered into a long-term, fee-based natural gas gathering and processing agreement with Antioch Energy LLC. Antioch’s dedication of more than 275,000 gross acres brings Valiant Midstream’s total acreage commitments in the Arkoma Stack basin to 2.1 million. Antioch’s production will be gathered and processed at Valiant Midstream’s Stanberry Processing Complex, a cryogenic processing facility located in Coal County, Oklahoma.

Within the acreage dedicated to Valiant Midstream, Antioch expects to continue development of three production benches in the fast-growing Arkoma Stack – the Woodford, Mayes and Caney formations in eastern Oklahoma. Antioch owns over 24,000 net contiguous acres in the core of the Arkoma Stack and operates 60 wells. The net resource potential recoverable in Antioch’s position is approximately 2 trillion cubic feet equivalent, with an inventory of 500-plus drilling locations.

As part of Valiant Midstream’s long-term Arkoma Stack growth strategy, the company will add capacity to accommodate the Antioch dedication, as well as future customer capacity. The first 220 MMcf/d of cryogenic processing capacity will be available at the company’s Stanberry plant near Coalgate, Okla., in November 2018. Additional capacity will become available in late 2019 and beyond, either through an expansion of the Stanberry facility or at a future Valiant Midstream plant site located near Atwood, Okla.

“We are extremely pleased to partner with Antioch Energy as we build upon one of the finest midstream systems in the Arkoma Stack basin,” said Valiant Midstream President and CEO Brandon Webster. “With our scheduled enhancements and expansion plans, our system will ultimately span more than 160 miles, including a 60-mile trunk line running north to south through the core of the liquids-rich window of this highly active play, which will allow us to provide best-in-class processing for producers no matter the location of their acreage.”

“This transformative transaction creates significant value to our production and reserves by realizing outstanding liquids value,” said Antioch President Nathaniel Harding. “Valiant Midstream’s best-in-class system will provide Antioch with superior processing and access to optimum pricing.”

Antioch CEO Kevin Dunnington said. “Our partnership with Valiant Midstream reflects Antioch’s mission to create value across all three stacked resource plays in our delineated, contiguous, core operated position with a full-scale infrastructure solution.”

Valiant Midstream currently operates and is actively constructing a total of more than 160 miles of gathering pipeline in the Arkoma Stack basin; an additional 50 miles will be completed in northern Hughes County in 2019. In total, the company plans to add another 220 MMcf/d of processing capacity by 4Q 2019, bringing its total Arkoma Stack capacity to over 440 MMcf/d.

ABOUT VALIANT MIDSTREAM, LLC

Headquartered in Oklahoma City, Valiant Midstream is a private midstream energy company focused on providing innovation, energy and results to midstream customers in the Mid-Continent and across North America. Valiant Midstream’s full suite of midstream services include natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Valiant Midstream is backed by an equity commitment from Tailwater Capital and Valiant Midstream’s founders, as well as a credit facility, bringing total financing capacity for Valiant Midstream companies to more than $400 million. For more information, visit www.valiantmidstream.com.

ABOUT ANTIOCH ENERGY, LLC

Antioch Energy is a private equity backed exploration and production company headquartered in Oklahoma City. The company is focused on midcontinent upstream development in fast-growing unconventional resources plays. Antioch is led by Kevin Dunnington, Nathaniel Harding, Keith Downing, David Fruit, Rob Underwood and Tyler Chastain, and is supported by Outfitter Energy Capital. For more information, please visit www.antioch.energy.

MEDIA CONTACT:

Adam Brooks
adam@candorpr.com
405-615-2659

###

The Interview: New Play, New Player

GATHERING-PROCESSING

Paul Hart Editor-In-Chief, Midstream Business Hart Energy Monday, May 14, 2018 – 10:29am

The Interview: New Play, New Player

Brandon Webster is president, CEO and founding partner of Valiant Midstream. Source: Valiant Midstream LLC

They say the best place to find new oil and gas reserves is where hydrocarbons already have been found. That’s certainly the case with southeastern Oklahoma’s Arkoma Basin. They say the best place to find new oil and gas reserves is where hydrocarbons already have been found. That’s certainly the case with southeastern Oklahoma’s Arkoma Basin. The town of Seminole, Okla., was a classic boomtown in the 1920s as the surrounding Seminole Field burst onto the energy scene. There’s a reason why the local newspaper is the Seminole Producer. After years of slumber, the area is coming alive again as a new, unconventional shale play. Producers tapping that play are served by a new midstream operator—Valiant Midstream—that, although scarcely a year old, has big growth plans for the region.

MIDSTREAM You began your midstream career at Copano and Kinder Morgan. How did that experience impact your plans for Valiant?

BRANDON WEBSTER At Copano, I was part of the Midcontinent division, which was formerly a small private startup known as Scissortail Energy that grew into an expansive gas gathering and processing platform in eastern and central Oklahoma. The Copano/Scissortail all-hands-on-deck approach really set a foundation for me in terms of what it takes in terms of culture to execute in a high growth midstream company. My tenure left me with this strong desire to be part of smaller, private companies. I liked the speed, the efficiencies that a small company with strong leadership brought to the table.

I had a front-row seat to observe Copano’s leaders execute an incredible growth story in the Eagle Ford—watching it transition into a major Eagle Ford player in just over a couple of years.

At the same time, I had the opportunity to lead our Midcontinent growth in both the Mississippi Lime and Arkoma that resulted in a significant number of new contracts and capital projects still paying dividends today. This period, 2011-2013, really just kind of set a strong standard and belief in my mind of what a responsive, nimble and not risk-averse midstream company can accomplish.

Copano’s 2013 acquisition by Kinder Morgan was truly a blessing in disguise for me. At Kinder I was very fortunate to work for some great people who, whether they know it or not, were very influential on my career and the development of my own leadership strategy. Further, the principles instilled into the company’s culture by Mr. Kinder regarding how to protect value by constantly monitoring and tracking the financial and operational metrics of a business will forever stick with me.

Always knowing where you stand allows you to make informed decisions in real time and gives you the opportunity to get out in front of problems rather than waiting to learn about them at the end of the quarter.

MIDSTREAM You are active in several trade organizations, including a couple in Oklahoma where Valiant operates. In your opinion, what can midstream executives gain through such professional relationships?

WEBSTER Right now, I am most active as a board member for the National Gas and Energy Association of Oklahoma, which brings together a large group of Oklahoma’s upstream, midstream and downstream leaders as well as supports industry education through student outreach and contributions to local universities. Also, I’m a member and strong supporter of the Oklahoma Independent Producers Association (OIPA).

I try to remain fairly active, when running a business and being a father and husband allow me to. I think what I have found in these organizations is that not only are they great resources to stay in touch with other folks in the industry, they help you understand what the industry landscape, especially here in the Midcontinent, looks like from a variety of perspectives. They give you a great opportunity to get broad exposure to lots of different people who may wind up being somebody you will do business with at some point in the future.

When I first entered the business as a young guy who knew virtually nobody in the industry, I joined a number of organizations where I met a large number of the contacts in my network. Today, I have two of them working with me here at Valiant.

The OIPA, specifically, is a great political advocate for Oklahoma’s oil and gas producers. I would encourage everyone in our business, to be aware of the national and local political issues that may have potential impact on our business and the OIPA does a fine job of that here in Oklahoma. I like being fully in tune with the areas in which we operate, and the political climate is a big component of that.

MIDSTREAM Your first big project is in southeastern Oklahoma’s Arkoma-Stack play. Can you tell us about it?

WEBSTER Yes. Interestingly enough, during my days at Copano and then subsequently Kinder Morgan, we had assets that we operated—gathering and treating assets—across the Arkoma, including parts of the particular area of the Arkoma Stack that is being redefined today. I have had a lot of opportunity to work the Arkoma dating back to 2008. During my tenure we secured some large contracts down there, built a lot of pipe and compression, connected more than 100 wells and added nearly 200 million cubic feet per day (MMcf/d) of new gas supply. While it’s changed a bit, I feel like I know the Arkoma very well.

Fast-forward to Valiant and the area’s re-emergence, which began forming over the past 12-18 months led by private-equity-backed producers, each with track records of discovering significant oil and gas resources in the Midcontinent. These producers were independently operating off an overarching thesis that a rich gas fairway spanning through the central and western portions of the basin would lead to the

Midcontinent’s next big play. This thesis, while varied by producer, was supported by strong economics generated by past Woodford wells.

The result to date has been the Arkoma Basin being one of the nation’s most-leased basins in 2017—with 2018 off to a strong start, looking more active than last year. The leasing frenzy has been paired with significant acquisition activity as producers began to block up specific core positions.

Our team tracked this leasing and acquisition activity early on and began communicating with the producers behind it. After those discussions, our thought was this might be a place that, due to some familiarity, we could really have some strong interest in as a company.

Getting into the development of this project, we really liked the idea that our team knows the Woodford specifically, and further, that the Arkoma has been a prolific producer for the past 100 years.

The Woodford has been highly productive for the past decade, plus utilizing horizontal drilling, and now it is just starting to show us what enhanced completion techniques—putting up to 2,000 pounds per foot of frack sand and fluid downhole—have done to really unlock the potential of the reservoir. Early on, these enhanced completions and low D&C [drilling and completion] costs really made forsome nice, rich gas wells that should only continue to improve.

Combine this with the potential Stack play opportunities presented by the Mayes and Caney formations and our outlook as a midstream provider looks very promising.

Valiant has publicly announced two deals to date and we are working on several other deals in the area. We signed long-term contracts with both Corterra Energy and Canyon Creek Energy out of Tulsa [Okla.]. We are laying somewhere near 150 miles of initial pipeline on the system. There are six initial compressor stations strategically laid out and we are installing a 200 million cubic feet per day (MMcf/d) cryogenic gas processing plant and a condensate stabilizer.

MIDSTREAM Has the Arkoma been overlooked by upstream operators seeking activity in the better-known Scoop and Stack plays?

WEBSTER I’m not certain that it has been overlooked as much as, if you watch the Stack specifically, there were a few spots within the Stack where some of the majors or large independents divested acreage over time. Now, a number of majors and large independents have seen the value that has been unlocked and have been buying in. I think this is just part of the new way of doing things, with private-equity dollars moving toward exploration and public company dollars looking for proven reserves and repeatable results.

In the Arkoma Stack, we view it a bit similarly. There were some large independents and public E&Ps in the area that divested of their acreage out there. Then these private operators, some of which we have teamed up with, came into the area and put some ingenuity, backed by science, to work and have begun to revitalize the basin.

They just looked at the rock in a different way from a stimulation and completion standpoint and found ways to maximize returns and potentially shift the geographic location of where wells had previously been drilled to an area that our gathering system spans, which we believe is the most liquids-rich portion of the basin.

MIDSTREAM From a midstream perspective, why the Arkoma rather than the better-known Scoop and Stack plays?

WEBSTER When we looked at the Arkoma Stack, we found significant need for gathering, processing, NGL and residue gas infrastructure in order to meet the demands of the growth the basins’ producers are forecasting. We always look for need in a basin rather than seeking to invest in areas already densely populated with midstream infrastructure.

In the portions of Hughes, Coal and Atoka counties [Okla.] where the core of our system lies, we found a lack of modern processing infrastructure and some aging and undersized pipeline assets. We felt like this presented ample opportunity to secure sizeable commitments from a number of producers. When looking to mitigate risk, being able to secure commitments from multiple producers was part of our core strategy.

Our team likes the Scoop and the Stack and hopes to be players in both, given the right opportunities. But at the moment, the Arkoma Stack gives us a great deal of enthusiasm as we could be a first mover in terms of significant pipeline investment and processing in service timing.

MIDSTREAM What is the schedule for your system startup?

WEBSTER We started gathering gas, effective in late March, just a few short weeks after signing contracts with Corterra and Canyon Creek. In the interim, we will be taking the gas to legacy processing plants in the area while our new our processing plant is being constructed.

Right now, we’re on schedule to have our 200 MMcf/d plant up and running by November. With a little luck and Mother Nature cooperating, there’s a chance we’ll beat that schedule. This time line will make the new Stanberry plant—named after Coal County native Pfc Jerry W. Stanberry who was killed in action in the Vietnam War—the first operational new plant in the basin.

Speed is critical, which is why we’ve invested heavily in having in-house engineering expertise to manage progress day in and day out.

MIDSTREAM With all the NGL production expected out of the basin, what is Valiant’s plan to handle takeaway?

WEBSTER Our initial analysis of the Arkoma revealed need for increased NGL transportation to Mt. Belvieu [Texas]. Not only were we looking at total takeaway capacity, but also T&F [transportation and fractionation] costs, given how sensitive rich-gas basin production economics are to T&F rates.

After a number of months of analysis and discussion, Valiant decided to anchor Targa Resources’ Grand Prix North NGL pipeline expansion into Oklahoma. With an aggressive in-service date of third-quarter 2018, and creation of an additional 200,000 barrels per day of NGL capacity from Oklahoma to Mt. Belvieu, Targa was able to meet our timing needs and provide a long-term plan to accommodate NGL production for our initial plant and all subsequent trains installed at our plant site.

We believe this solution plays well with our strategy to think creatively, provide forward-thinking solutions and deliver a result that keeps gas flowing and netbacks up.

MIDSTREAM What’s next? Do you look to enlarge your footprint in the Arkoma or are you looking to move elsewhere in the Midcontinent, or beyond?

WEBSTER We intend to continue to invest in the Arkoma. We believe that this is an opportunity that is just getting started and we think we can go put more capital to work there and provide more solutions for producers in the area.

We see residue capacity as the next challenge for the area and we think there could be a need to go spend $100 million-plus on a residue gas pipeline out of this area. We intend to play some part in that when the time is right. For now, our plant is strategically located to maximize utilization of the basin’s existing residue infrastructure.

We are looking at some projects in other basins currently and think that Valiant very much could be a multi-basin player. It’s all part of the business plan at this time, nothing is out of the realm or scope of possibility.

MIDSTREAM Tailwater Capital is your private equity partner. What role has it played in the company’s startup and management?

WEBSTER Chad Cagle and Zach Gray, my two partners, and I had discussions with numerous private-equity companies in the spring of 2017. We met Tailwater and things just clicked. We had great, instant chemistry with those guys and quickly reached an agreement and formed Valiant in July 2017.

Since then, it has been active engagement with them almost every single day. They are highly communicative with us but give us the latitude to grow and operate our business our way. They are very responsive and share the same vision of getting things executed quickly for producers, making sure that our business isn’t lagging in any way because of Tailwater. We needed private equity that moves as fast as we do and Tailwater has exceeded our expectations and more from Day One.

For them, nimble is an understatement as we’ve thrown some curveballs at them and received solutions in return, not roadblocks. They have been right there with us with every step through this process and, to their credit, they deeply understand the midstream business, which is something I know was highly appealing to our team.

MIDSTREAM Do you have any plans to do an IPO in the near future? 

WEBSTER Never say never, right? We just don’t know.

The Arkoma Stack’s growth and capital requirements may dictate that, but our focus right now is simply executing our growth strategy. You know, there have been some interesting IPOs and SPACs [special purpose acquisition companies] with a midstream component launched over the last year or so, but we just don’t know what the appetite for an IPO will look like in the future.

We see plenty of investment opportunity in the Arkoma Stack and that means further investment dollars will be required from either public or private markets. We believe the returns will be there to attract those dollars when the time comes.

MIDSTREAM What is Valiant’s niche? If I were an Arkoma producer, why should I choose you over another midstream service provider?

WEBSTER I think everything initially starts with relationships, which are upheld by integrity and performance. We stand by who and what we are at all times. Our corporate tagline is: “Innovation. Energy. Results.”

Daily, we aspire to innovate rather than deliver the status quo. Our team is full of energy and passion for this industry and we believe that fuels our execution and responsiveness. We realize all effort is wasted without results, therefore details cannot be overlooked, as those details are what drive on-time projects and operational runtime.

With that said, our niche that has made us successful in this basin to date has been being a netback-focused midstream team. We do that with every single gathering and processing agreement and otherwise.

We start with asking the question, what are the economics for this basin? That helps you identify the trigger points for what the producer’s challenges are in order to make an acceptable rate of return on their business, then we work midstream in from there. It either makes sense or it doesn’t, that’s how we have approached the Arkoma Stack—finding out what our producers need to achieve the rates of return that will keep them actively running rigs and increasing production in the area.

This approach has made for great alignment with our upstream customers resulting in a combined commitment of nearly 2 million acres to an AMI [area of mutual interest].

MIDSTREAM What’s the biggest challenge for a midstream startup in today’s business climate?

WEBSTER It has been said before but it all boils down to people, identifying the right players to come in and be a part of not only the management team, but then become integral pieces of the staff that compliment that management team. It takes a special type of individual to come and fit into a private-equity business model, where you’re wearing a lot of hats and doing things that you haven’t typically done on a daily basis inside a large MLP in the midstream sector, or spending time in a large upstream company like many of our key people here at Valiant have.

We are continually identifying people who are willing to roll up their sleeves, represent and execute our core values, and do things all the way from digging through the details of key contracts down to figuring out whose turn it is to buy the coffee for the office—which is a high priority in my book.

Those are all parts of things that, within this entrepreneurial environment, you have to pick up and do. We have felt extremely blessed here in Oklahoma City, and in Tulsa, where our secondary office is. There has just been an immense talent base of high-caliber energy professionals who are looking for opportunities that allow them to continue to live in Oklahoma.

We have been able to pick up some very talented people who come in the door and make an immediate impact. I know we feel fortunate, because that was probably our biggest worry and challenge transitioning into an operating company: How were we going to find the right people to help make this business model a success and deliver the solutions and results we expect?

MIDSTREAM The Midcontinent faces gas-on-gas competition from the Permian, Marcellus and other booming plays. What is the region’s advantage over this competition?

WEBSTER It all starts with access to pipelines and flow assurance to economic markets. Each basin you mentioned has its own challenges facing it in terms of having the capacity to get gas where it needs to go.

I think that Oklahoma has great access to the markets that have high potential for future demand increases. That said, the continuing expansion of the gas pipeline infrastructure that can pull gas out of Oklahoma and, specifically, send it into either the Texas market or the Perryville [La.] Hub is critical. We like South and West Texas where we get access to not only Mexican market hubs and westbound pipelines, but also the ability to move gas onto the water via LNG terminals.

Perryville has outstanding connectivity that can offer strong liquidity, and Oklahoma gas can be very competitive with Marcellus gas at this market center, with lower transportation costs to get the gas to Perryville. Otherwise, we think that we can continue to thrive here in Oklahoma with continued development of new intrastate gas markets—in which power plant gas conversions will play a big part.

Paul Hart

Paul Hart serves as editor-in-chief of Midstream Business magazine. He brings 30 years’ experience in all phases of the worldwide oil and gas industry – upstream, midstream and downstream – to the publication. See full bio

Valiant Midstream to Build Natural Gas Gathering System and Processing Plant in Oklahoma’s Arkoma Stack Play Corterra Energy and Canyon Creek Energy Sign Long-Term Contracts

OKLAHOMA CITY (Feb. 7, 2018) – Valiant Midstream LLC announced today it has commenced construction on a natural gas gathering system and cryogenic gas processing plant in the heart of the Arkoma Stack play in southeast Oklahoma. The system is expected to come online in multiple phases starting in the second quarter of 2018. It will benefit from long-term dedications of two prominent acreage holders in the region.

Valiant will provide midstream services to multiple oil and gas producers targeting liquids-rich stacked pay zones, including the highly prolific Woodford formation. The initial system infrastructure will span Hughes, Coal and Atoka counties and portions of Pittsburg, Pontotoc and Seminole counties.

The initial phase of the project will include the installation of a 200 MMCFD cryogenic processing plant and a high-pressure trunk line spanning through the basin’s liquids-rich fairway with a gathering system consisting of 12-inch to 24-inch steel pipeline, five gas compression facilities and condensate stabilization. The processing plant will provide access to multiple residue gas pipelines and will offer Valiant’s customers market flexibility, enhanced netbacks and assurance of flow. Valiant expects an initial investment of $200 million to the Arkoma Stack and to increase its investment as producers’ needs develop across the basin.

“Providing best-in-class gas gathering and processing assets for producers in the Arkoma Stack was a day-one priority for Valiant,” said Valiant President and CEO Brandon Webster. “We stand ready to meet the infrastructure requirements of this stacked source rock basin and look forward to providing rapid response and flexible solutions to drive further investment in the area.”

Valiant will provide gathering and processing services for anchor customers Corterra Energy LLC and Canyon Creek Energy Arkoma LLC under long-term contracts. Combined, these companies have committed over 1.8 million gross acres within an area of mutual interest to the midstream project. Corterra and Canyon Creek currently control close to 500,000 gross acres across the re-emerging Arkoma Stack play.

“Canyon Creek and Corterra’s positions blanket a large portion of the liquids-rich window of the Arkoma Stack,” Webster said. “Both producers are clear basin leaders which hold premier acreage positions and have the right management teams and capital partners to execute their development strategies.”

ABOUT VALIANT MIDSTREAM, LLC

Headquartered in Oklahoma City, Valiant Midstream is a private midstream energy company focused on providing innovation, energy and results to midstream customers in the Mid- Continent and across North America. Valiant’s full suite of midstream services include natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Valiant Midstream is backed by an initial $150 million funding commitment from Tailwater Capital and Valiant management. Tailwater expects to increase its commitment as Valiant executes its growth strategy. For more information, please visit www.valiantmidstream.com.

ABOUT CANYON CREEK ENERGY – ARKOMA, LLC

Canyon Creek Energy – Arkoma (CCEA) is a Tulsa, Oklahoma-based oil and natural gas company primarily focused on exploiting natural resources in Oklahoma. CCEA is managed as an affiliate of Canyon Creek Energy Operating LLC, which is led by President and CEO R. Luke Essman. CCEA is a joint venture partnership between CCEA management, private investors and Vortus Investment Advisors, headquartered in Fort Worth, Texas. For more information, please visit www.canyoncreekenergy.com.

ABOUT CORTERRA ENERGY, LLC

Founded in 2016 and led by industry veterans, Corterra Energy is an independent exploration and energy production company headquartered in Tulsa, Oklahoma, with operations in the Mid-Continent region of Oklahoma. Corterra Energy is partnered with private equity firm White Deer Energy, headquartered in New York, New York. Learn more by visiting www.corterraenergy.com.

MEDIA CONTACTS:

Valiant Midstream

Adam Brooks
adam@candorpr.com
405-615-2659

Canyon Creek Energy Arkoma

Luke Essman
lessman@cceok.com
918-561-6737

Corterra Energy

David Wheelis
dwheelis@corterraenergy.com
918-615-0400

Valiant Midstream Appoints New Business Development Executive

OKLAHOMA CITY, August 25, 2017 – Valiant Midstream has announced the hiring of Cody Blosch as Vice President of Business Development. Blosch will assume responsibility for executing Valiant’s growth strategy by leveraging his unique combination of upstream and midstream experience.

Blosch began his career with ExxonMobil in Houston where his performance consistently ranked among the top of his colleagues. He then began building expertise in the midstream industry holding management roles with Chesapeake Midstream Partners; its successor, Access Midstream Partners; and Enable Midstream Partners as he led projects and managed assets of over $1 billion in value through acquisitions, joint ventures and organic growth projects. Blosch most recently served as Manager of Gas Marketing for Continental Resources where he partnered with midstream service providers to develop mutually beneficial solutions to maximize Continental’s gas production in the Midcontinent and Bakken regions.

“We are excited about the wealth of experience and strong relationships Cody brings to the Valiant team,” said Brandon Webster, Valiant President and CEO. “Cody’s proven track record with both producers and midstream providers enforces Valiant’s mission to offer a producer-focused perspective and strengthens our ability to develop innovative solutions that will drive value-creating results for our customers.”

Blosch earned a bachelor’s degree and a master of business administration degree from Oklahoma State University and was named a Top 10 graduate in his MBA class.

ABOUT VALIANT MIDSTREAM, LLC

Headquartered in Oklahoma City, Oklahoma, Valiant Midstream is a private midstream energy company focused on providing innovation, energy, and results to midstream customers in the Mid-Continent and across North America. Valiant’s full suite of midstream services includes natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Valiant Midstream is backed by a $150 million funding commitment from Tailwater and Valiant management. Tailwater expects to increase its commitment to Valiant as the company executes its growth strategy. For more information, please visit www.valiantmidstream.com.

ABOUT TAILWATER CAPITAL LLC

Dallas-based Tailwater Capital is a sophisticated, growth-oriented energy private equity firm with a wellestablished track record, having executed more than 65 energy transactions in the upstream and midstream sectors representing over $16.6 billion in transaction value. Tailwater currently manages over $2.1 billion in committed capital, over $700 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins. For more information, please visit www.tailwatercapital.com.

Media Contacts:
Saxum PR
Carly O’Donnell
odennell@saxum.com
832-787-1432

Startup Midstream Company Targets Oklahoma Oil fields

Original Story Posted in News OK – http://m.newsok.com/article/5560569

For a trio of Tulsa businessmen, it’s the perfect time to start a new oil and natural gas company in Oklahoma City.

Brandon Webster, Chad Cagle and Zach Gray last month moved into Valiant Midstream LLC’s new north Oklahoma City office and have begun looking for projects to support Oklahoma’s again-active oil fields.

Backed by a $150 million, 10-year investment by Dallas-based private equity firm Tailwater Capital, Valiant Midstream is designed to build or buy gathering, processing and pipeline assets in Oklahoma, including the STACK, SCOOP and other parts of the Anadarko Basin as well as southeast Oklahoma’s Arkoma Basin, the founders said.

“We feel like the there’s some stability within the crude and gas prices now, and it’s always a good time to invest when things are on the rise again,” Webster said. “We also see the talent pool in the Oklahoma City area as a driver to start a midstream business now.”

Read full article on News OK – http://m.newsok.com/article/5560569

 

Valiant Midstream Secures $150 Million Equity Commitment from Tailwater Capital

OKLAHOMA CITY–(BUSINESS WIRE)–Valiant Midstream, headquartered in Oklahoma City, announced a $150 million commitment from a Dallas-based energy private equity firm, Tailwater Capital. Valiant Midstream is focused on providing innovation, energy and results to midstream customers in the Mid-Continent and across North America. Valiant aims to redefine a solutions oriented approach to the midstream industry, through providing a full suite of midstream services including gas gathering, processing, treating and compression, crude oil gathering, storage and transportation, condensate stabilization/splitting, produced water gathering and redelivery, and commodity marketing.

By leveraging our commercial, engineering and operational expertise, the veteran management team at Valiant is dedicated to protecting the investments of our upstream partners by delivering scalable projects on time while setting a new standard for operational excellence. Valiant’s management has lived midstream from both the midstream and upstream perspective, offering the experience to anticipate challenges and the knowledge to solve them.

The company, led by President and Chief Executive Officer Brandon J. Webster, Chief Operating Officer Chad B. Cagle and Chief Finance Officer Zach N. Gray, brings diverse midstream and upstream experience from companies including Kinder Morgan, Inc. (NYSE: KMI), Copano Energy, LLC (acquired by KMI), Enable Midstream Partners, LP (NYSE: ENBL), Midstates Petroleum, LLC (NYSE: MPO) and SemGroup Corporation (NYSE: SEMG). Collectively, the team has a proven track record, playing key roles in more than $4 billion in midstream projects and transactions. Valiant has extensive experience and success originating projects and acquisitions as well as managing, constructing and operating assets in the Mid-Continent, Permian Basin, Rockies, Bakken and Haynesville.

“We couldn’t be more excited to be building a company at home in Oklahoma,” said Mr. Webster. “While Valiant stands ready to pursue opportunities in all U.S. basins, we’re excited about the landscape in the Mid-Continent. The growth in the SCOOP and STACK have revitalized our state and we expect production to hit record levels. With more than 130 rigs deployed in the state, we know Oklahoma is primed for growth and Valiant is here to serve the producers who invest here.”

Jason Downie, Managing Partner at Tailwater, said, “To be successful in the Mid-Continent, we believe that it is extremely important to have a team that has deep ties to the basin as well as long-standing relationships with existing producers and midstream operators in the area. Valiant brings tremendous familiarity and midstream expertise across the Mid-Continent to Tailwater, and we are thrilled to be partnering with a team that is well-respected in the Oklahoma community. This team represents the first commitment in our new midstream fund, Energy Fund III.”

“When looking for a capital partner, Valiant sought long-term alignment, ability to expedite the evaluation of investment opportunities, and true expertise in the midstream space. Tailwater exceeded our expectations and was a clear choice to help us execute on our vision,” Webster said.

Valiant Midstream was represented by Connor & Winters, LLP’s Tulsa, Oklahoma office. Partner J. Ryan Sacra served as lead advisor to Valiant. Thompson & Knight, LLP advised Tailwater Capital, with J. Holt Foster, III as lead counsel from the firm’s Dallas office.

ABOUT VALIANT MIDSTREAM, LLC

Headquartered in Oklahoma City, Oklahoma, Valiant Midstream is a private midstream energy company focused on providing innovation, energy, and results to midstream customers in the Mid-Continent and across North America. Valiant’s full suite of midstream services includes natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Valiant Midstream is backed by a $150 million funding commitment from Tailwater and Valiant management. Tailwater expects to increase its commitment to Valiant as the company executes its growth strategy.

For more information, please visit www.valiantmidstream.com.

ABOUT TAILWATER CAPITAL LLC

Dallas-based Tailwater Capital is a sophisticated, growth-oriented energy private equity firm with a well-established track record, having executed more than 65 energy transactions in the upstream and midstream sectors representing over $16.6 billion in transaction value. Tailwater currently manages over $2.1 billion in committed capital, over $700 million of which is available for new investments. Tailwater is focused on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins. For more information, please visit www.tailwatercapital.com.

Contacts

For Valiant Midstream
Carly O’Donnell, 832-787-1432
codonnell@saxum.com
or
For Tailwater Capital
info@tailwatercapital.com