Clearfork Midstream LLC agreed to acquire Azure Midstream Energy LLC following a $400 million initial capital commitment from EnCap Flatrock Midstream, Clearfork said in a Jan. 18 company release.
Based in Fort Worth, Texas, Clearfork is a growth-oriented midstream company that was formed in 2020 to provide comprehensive midstream solutions for oil and gas producers in basins across North America.
“Over the past few years, we have developed strong relationships with key members of the EFM team,” Clearfork CEO Kipper Overstreet commented in a company release.
Overstreet, who previously served in roles of increasing responsibility at Azure Midstream, leads the Clearfork team comprised of industry veterans including COO George Grau Jr., Chief Commercial Officer Corey Lothamer and Executive Vice President Kevin Venturini. Together, they have more than 75 years of collective experience in the energy industry, according to the company release.
“[EnCap Flatrock Midstream] aligned with us on the acquisition of Azure Midstream and Azure’s growth potential,” Overstreet added. “We are very pleased to be part of the EFM family of companies.”
Azure Midstream’s natural gas gathering and treating platform spans the core areas of the Haynesville Shale formation and includes more than 500 miles of pipeline and 1.2 Bcf/d of treating capacity across systems in North Louisiana and East Texas. Azure also has nine downstream interconnects offering access to major market hubs, including Henry Hub, Houston Ship Channel/Katy, Carthage, Columbia Gulf Mainline, Perryville and Agua Dulce (via TETCO and NGPL).
In a statement commenting on the announcement, EFM Managing Director Zach Kayem said: “We have known members of management for better than half of a decade and are excited to pursue this significant midstream opportunity in East Texas and North Louisiana.”
Kayem also serves as a member of the Clearfork board of directors.
Terms of the Azure Midstream transaction weren’t disclosed. The transaction is subject to standard regulatory approvals and is expected to close during first-quarter 2022.
Clearfork plans to invest additional capital following the acquisition to optimize the efficiency of Azure Midstream’s systems in support of existing customers and to pursue additional acreage dedications, throughput volumes and regional infrastructure, the company release said.
Upon closing the transaction, most of the Azure Midstream team will move on to new ventures with the launch of Laser3, a midstream development and acquisition company with a “battle hardened and wizened management team eager to take on new challenges,” l.J. “Chip” Berthelot II said in a statement on the company website.
Azure Midstream was formed in 2013 with investment by members of our management team and our primary sponsors, Energy Spectrum Partners and Tenaska Capital Management.
Latham & Watkins LLP was legal adviser to EnCap Flatrock Midstream on the equity commitment with Partner James M. Garrett in the lead role. Vinson & Elkins LLP served as legal adviser to Clearfork on both the equity commitment and the acquisition of Azure Midstream. Partner Matthew Falcone led the firm’s legal team.
Donovan Ventures served as financial adviser to Clearfork regarding the Azure acquisition. Jefferies was financial adviser and Porter Hedges LLP was legal adviser to Azure.
Recommended Reading
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Equinor Acquires Stake in Standard Lithium Smackover Projects
2024-05-08 - Equinor’s transaction, completed effective May 7, includes interests in Standard Lithium’s flagship South West Arkansas Project and East Texas properties.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.