A midstream company that serves oil and gas producers in Oklahoma, Kansas and Texas has gone into a strategic partnership with Morgan Stanley Energy Partners, in a move that will have a direct impact on one Oklahoma operation.
The move was taken this week by Houston-based Durango Investment Holdings LLC. As part of the agreement, Morgan Stanley made a “majority equity investment” in Durango Midstream to support the company’s growth in the Midcontinent region. Terms of the transaction were not revealed.
The announcement indicated that funding from Morgan Stanley “provides the company with additional resources to upgrade and expand Durango Midstream’s existing asset base and capabilities.”
One of the initial growth projects will be the focus on expanding the gathering and processing system in Grady County “to support producers active in the rapidly growing Merge-SCOOP-STACK plays of central Oklahoma.”
Durango Midstream is led by Richard A. Cargile, President and Chief Executive Officer. He most recently was President of Midstream Operations at Energy Transfer Partners L.P.
Robert Lee, Managing Director of Morgan Stanley Energy Partners, said, “We are delighted to partner with Durango Midstream – given its exceptional team, strategic asset base and the attractive opportunities presented by nearby oil and gas activity, the business is uniquely positioned for growth.”