STAMFORD, Conn., HOUSTON, DALLAS and LONDON, Nov. 1,
2018 /PRNewswire/ -- First Reserve, a leading global private
equity investment firm exclusively focused on energy, today
announced an agreement to purchase Dominion Energy's (NYSE: D) 50%
interest in Blue Racer Midstream, LLC ("Blue Racer" or "the
Company), funded in part by equity from First Reserve Fund XIII and
investment funds affiliated with First Reserve. The
transaction is expected to close prior to year-end 2018, subject to
regulatory approvals.
Blue Racer is a joint venture formed in December 2012 by Dominion and Caiman Energy II,
LLC ("Caiman II") to own, operate, develop and acquire midstream
assets in the Utica Shale and certain adjacent areas in the
Marcellus Shale. Blue Racer provides natural gas gathering,
compression, dehydrating, treating, processing, fractionation, and
transportation services, forming an interconnected midstream
business.
With more than 700 miles of gathering pipeline and 800 million
cubic feet per day of cryogenic processing capacity, Blue Racer's
business is underpinned by a high degree of operational reliability
and significant contractual commitments from its customers. These
commitments are comprised of multi-year contracts that include
various types of commercial arrangements, including acreage
dedications, well pad dedications, first flow commitments, minimum
volume commitments, and demand payments. The Company believes its
strategically located assets and contractual relationships with
material customers will allow it to retain and grow its position as
a leading midstream company serving customers in the Utica and
Marcellus shale plays.
Gary Reaves, Managing Director at
First Reserve, stated, "First Reserve has a deep history of
investing behind some of North
America's most significant midstream operators. In addition,
we have a long history of investing in the Utica shale, most
notably through our ownership of Ascent Resources which is
currently the largest natural gas producer in the basin. This
historical and current portfolio experience leads us to believe the
Utica shale is one of the premier rich natural gas development
areas in the U.S., and, in our view, Blue Racer is particularly
well-positioned to capture this opportunity. We are excited to work
with Blue Racer's existing owners and the Company's experienced
management team to capitalize on a strong growth platform poised to
create value for our investors."
Stephen L. Arata, Chief Executive
Officer for Blue Racer, stated, "When we formed Blue Racer in 2012,
Dominion contributed the initial gathering, processing and
fractionation assets that allowed Blue Racer to establish a
foothold in the region that we expanded into a growing business
serving the leading producers in the Utica and Marcellus shale
plays. Dominion is an outstanding company, and we are grateful for
our successful six-year partnership. As we look forward, we are
excited to welcome First Reserve as a partner that, along with
Caiman II, will help us continue to drive growth and expand our
regional footprint. First Reserve's deep understanding of the
basin, financial strength, and network bring Blue Racer a partner
that puts us in a strong position to advance our business plan into
the coming decade."
Transaction terms were not disclosed.
About First Reserve
First Reserve is a leading global private equity investment firm
exclusively focused on energy. With 35 years of industry insight,
investment expertise and operational excellence, the Firm has
cultivated an enduring network of global relationships and raised
approximately USD $31 billion of
aggregate capital since inception. First Reserve has completed over
650 transactions (including platform investments and add-on
acquisitions), creating several notable energy companies throughout
the Firm's history. Its portfolio companies have operated on six
continents, spanning the energy spectrum from upstream oil and gas
to midstream and downstream, including resources, equipment and
services, and associated infrastructure. Please visit
www.firstreserve.com for further information.
For First Reserve media inquiries, please contact:
Jonathan Keehner / Julie Oakes
Joele Frank, Wilkinson Brimmer
Katcher
212.355.4449
Email: joakes@joelefrank.com
For Blue Racer media inquiries, please contact:
Casey Nikoloric
Managing Principal, TEN|10 Group
303.433.4397, x101 o, 303.507.0510
m
Email: casey.nikoloric@ten10group.com
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SOURCE First Reserve