No sales price was announced but another big sale has been made of operations in the Permian Basin of West Texas. It is there that BP Energy Partners LLC has sold its Pinnacle Midstream LLC company, a midstream provider in the Delaware portion of the Permian Basin.
The buyer is I Squared Capital, giving it the infrastructure that serves multiple producers in an area with some of the highest rig activity in the U.S. Pinnacle Midstream is headquartered in Houston with another office in Midland, Texas.
“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.”
RBC Capital Markets served as the exclusive financial advisor to Pinnacle in the transaction and Thompson & Knight LLP served as legal counsel to BPEP.