Cardinal Midstream III forms with $250 Million Equity Commitment from EnCap Flatrock Midstream

DALLAS--()--Cardinal Midstream (“Cardinal”) today announced the formation of Cardinal Midstream III, LLC (“Cardinal III”). Cardinal III is backed by a $250 million equity commitment from EnCap Flatrock Midstream (“EnCap Flatrock”) to support the continued growth and development of Cardinal’s core business. Cardinal III will pursue midstream acquisitions and development opportunities in both conventional and unconventional resource plays across North America.

Cardinal is led by Chairman and CEO Doug Dormer, President and CFO Tim Roberts, Executive Vice President and COO T. D. Baskin, and Executive Vice President and CCO Mark Ward. The company’s senior leadership team has been directly involved in the acquisition, development and operation of more than $1.3 billion in midstream assets. Cardinal is focused on natural gas and crude oil gathering, natural gas processing, centralized compression facilities, condensate stabilization, vapor recovery and natural gas treating.

“Cardinal is proud to announce its third partnership with EnCap Flatrock. They have been a great partner and have supported us through multiple industry cycles,” said Cardinal Midstream Chairman and CEO Doug Dormer. “We are excited about the prospects to grow our gathering footprint in Tioga County, Pennsylvania, as well as the opportunity to enter other basins across the country. With a highly experienced team and a successful operational track record, Cardinal has established a solid platform that is well positioned for growth.”

“We are very pleased to continue our long and extremely successful relationship with Cardinal Midstream by supporting the formation of Cardinal III,” said EnCap Flatrock Managing Partner and Founder Billy Lemmons. “Cardinal has a great track record, driven by a deep understanding of producer needs and how to safely execute on them with speed and operational excellence.”

On March 6, 2017, Cardinal Midstream II, LLC (“Cardinal II”) closed on the sale of its interest in Cardinal PA Holdings, LLC (“Cardinal PA”) to a subsidiary of Energy Transfer Partners, L.P. Cardinal PA provides natural gas and condensate gathering, compression and condensate stabilization services in the Marcellus Shale of southwest Pennsylvania. Cardinal II continues to own and operate a natural gas gathering system in the dry gas Utica Shale of north central Pennsylvania.

Legal Advisers

Cardinal was advised by Dallas law firm Mack Matheson & Marchesoni PLLC. The team was led by partners Tim Mack and Scott Matheson. Thompson & Knight LLP represented EnCap Flatrock Midstream with partner Sarah E. McLean leading the legal team from the firm’s Houston office.

About Cardinal Midstream

Cardinal was founded in 2008 and has successfully invested more than $450 million in private capital since inception. Cardinal is focused on natural gas and crude oil gathering, natural gas processing, centralized compression facilities, condensate stabilization, vapor recovery and natural gas treating. Cardinal is based in Dallas and has offices in Kingwood, Texas, and Cranberry Township, Pennsylvania. Visit www.cardinalmidstream.com for more information.

About EnCap Flatrock Midstream

EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors. EnCap Flatrock is based in San Antonio with offices in Oklahoma City and Houston. The firm manages investment commitments of nearly $6 billion from a broad group of institutional investors. EnCap Flatrock currently is making commitments to new management teams from EFM Fund III, a $3 billion fund. Please visit www.efmidstream.com for more information.

Contacts

TEN|10 Group
Casey Nikoloric
303.433.4397, x101 o
303.507.0510 m
casey.nikoloric@ten10group.com

Release Summary

Cardinal Midstream today announced the formation of Cardinal Midstream III, LLC. Cardinal III is backed by a $250 million equity commitment from EnCap Flatrock Midstream.

Contacts

TEN|10 Group
Casey Nikoloric
303.433.4397, x101 o
303.507.0510 m
casey.nikoloric@ten10group.com