BP Energy Partners sells Pinnacle system
Published by Anna Nicklin,
Assistant Editor
Hydrocarbon Engineering,
BP Energy Partners, LLC (BPEP) is set to sell one of its portfolio companies, Pinnacle Midstream, LLC, to I Squared Capital through its ISQ Global Infrastructure Fund II. Pinnacle is a strategically located provider of crude and natural gas gathering, natural gas processing and related midstream solutions in the Delaware portion of the Permian Basin of West Texas, US. The newly built infrastructure serves multiple producers in an area with some of the highest rig activity in the US.
“This transaction is a very important milestone for our team,” said Greg Sargent, founder and CEO of Pinnacle. “Over the past three years, we have worked hard to create significant value by developing, constructing and bringing into operation a full-service midstream solution in Culberson and Reeves Counties. This asset will serve some of the best producers in the basin and we look forward to working with I Squared Capital to expand the system.”
Michael Watzky, Managing Partner at BPEP, said, “We are proud of the success that Greg Sargent and his team achieved at Pinnacle. Pinnacle and BPEP have built a strategic asset in one of the most active basins in North America.”
Commenting on the transaction, Adil Rahmathulla, Partner at I Squared Capital noted, “We are excited to work with the Pinnacle team to bring I Squared Capital’s operating expertise and capital to the company as it expands its footprint and service offerings to provide additional downstream optionality for producers in the region.”
Pinnacle’s current management team will continue to run the company as it pursues its growth strategy. The transaction is expected to close following customary regulatory approvals.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/25102017/bp-energy-partners-sells-pinnacle-system/
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