Aspen Midstream LLC secured an initial commitment of $200 million from private equity firm EnCap Flatrock Midstream and the Aspen Midstream management team.
Dallas-based Aspen Midstream offers a full suite of integrated midstream solutions to oil and gas producers operating across North America. Services include natural gas gathering, processing, compression and treating; condensate stabilization and vapor recovery; crude oil gathering and terminaling; and produced-water gathering and disposal.
The company’s management team is comprised of four founders who are experienced in growth-oriented midstream projects. They have worked together for more than eight years and collectively have vast experience in areas across the country including the Eagle Ford Shale, Delaware Basin, Midland Basin, Midcontinent, Haynesville Shale and the Barnett Shale.
CEO James Clarke leads the team and oversees execution of its strategic vision. He has more than 19 years of energy industry experience, most recently as vice president of business development at Energy Transfer Partners LP (NYSE: ETP). Clarke held various positions of increasing responsibility at Crosstex Energy, TXU Electric Power and Dynegy.
Aspen Midstream’s other founding members are Chief Commercial Officer Stephen Reilly, Chief Operating Officer Robert Underwood and Vice President of Business Development Matt Ray. Prior to the formation of Aspen Midstream, Reilly was senior director of business development at Energy Transfer Partners, where he worked alongside Underwood, who served as director of engineering, and Ray, who served as director of business development.
“We are excited to create a fast-paced entrepreneurial environment and leverage our experience, relationships and deep understanding of producer needs. Our partnership with EnCap Flatrock brings strong financial support from the largest provider of value-added venture capital in the sector,” said Aspen Midstream CEO James Clarke. “EnCap Flatrock provides more than capital. The scope of their team’s financial and technical knowledge and understanding of the midstream space is invaluable. They are a natural fit for us.”
“Our goal is to build on our established track record of creating value for our customers by offering flexible commercial solutions, one-stop shopping for an integrated set of midstream services and rapid execution that is reliable and safe and maximizes netbacks.”
The financial backer also expressed enthusiasm.
“We are very impressed by the Aspen Midstream team,” said EnCap Flatrock Midstream Managing Director Sam Pitts, a member of the Aspen Midstream board of directors. “The founders have an outstanding track record of working together across multiple basins and achieving tremendous success. James Clarke, Stephen Reilly, Robert Underwood and Matt Ray are well known and highly regarded across the industry, extremely motivated and have diverse skill sets that complement each other very well. We are excited to get to work in support of the company’s growth.”
Aspen Midstream was advised by Dallas law firm Mack Matheson & Marchesoni PLLC. The team was led by partner Scott H. Matheson. Thompson & Knight LLP represented EnCap Flatrock Midstream with partner Sarah E. McLean leading the legal team from the firm’s Houston office.