RiverRock Energy Secures $125 Million Equity Commitment from EnCap Flatrock Midstream
21 April 2014 - 10:05PM
Business Wire
RiverRock Energy, LLC (“RiverRock”) today announced an initial
equity commitment of $125 million from private equity firm EnCap
Flatrock Midstream (“EnCap Flatrock”) and management. RiverRock
will develop midstream solutions for oil and gas producers and
other customers needing crude oil logistics services to
gather, store and transport crude oil by pipeline and rail. In
addition, RiverRock will provide the
necessary infrastructure to handle condensate, fresh and
produced water, natural gas liquids and natural gas. The company is
pursuing greenfield and acquisition opportunities in emerging
resource plays and other producing basins experiencing rapid
growth.
RiverRock’s founding partners are President and Chief Executive
Officer (CEO) Greg Schmidt, Executive Vice President and Chief
Operating Officer (COO) Patrick Eurek and Vice President of
Commercial Development Keith Taylor. The management team has more
than 85 years of combined midstream segment and other energy
industry experience in every aspect of the midstream business and
strong, long-standing entrepreneurial relationships with producers,
marketers, refiners, traders and other stakeholders in the oil and
gas supply chain.
Jones Day represented RiverRock Energy with John M. Saada, Jr.,
a partner in the firm’s Cleveland office in the lead role. Thompson
& Knight LLP represented EnCap Flatrock Midstream with partner
Sarah E. McLean leading that firm’s legal team from Thompson &
Knight’s Houston office.
CEO Perspective
“I am pleased to announce our partnership with EnCap Flatrock.
We are privileged to have EnCap Flatrock Midstream as our partner,
and we look forward to building a long-term and productive
relationship with the firm,” said RiverRock President and CEO Greg
Schmidt. “In previous roles, each of RiverRock’s founding partners
was successful in building and sustaining profitable growth by
working to understand and meet the needs of our customers.
RiverRock was formed with the vision of building a premier
midstream services business focused on creating value for its
customers by providing logistics infrastructure tailored to meet
those needs,” Mr. Schmidt said.
Bill Waldrip, a managing partner at EnCap Flatrock and a
RiverRock board member, added that working with a management team
as qualified as RiverRock’s was attractive from the beginning.
“EnCap Flatrock invests in skilled management teams with a strong
business plan, valuable connections and a proven ability to
execute. RiverRock has a promising vision and its founders have
very impressive track records of creating value in the midstream
sector. We’re excited about working with this team and look forward
to the evolution of the RiverRock story. As the company achieves
successful results, we have the capacity to make additional equity
commitments to RiverRock to fund growth.”
Management Team
Greg Schmidt has more than 36 years of domestic and
international experience in the energy industry. Prior to forming
RiverRock, Mr. Schmidt served for two years as senior vice
president of commercial operations at Energy Transfer, where he was
responsible for the development of a crude oil midstream business
segment. Before joining Energy Transfer, he was vice president of
marketing and business development for NuStar Energy, LP and
related companies, KANEB Pipe Line Partners and Valero LP. While at
NuStar Mr. Schmidt was responsible for development of the pipeline
transportation business segment and led its profitable growth for
seven years. Prior to NuStar he was with TEPPCO Partners’ upstream
business segment for four years in a management role in corporate
and business development. From 1977 to 2000, Mr. Schmidt worked for
Koch Industries, Inc. in various management roles, including
president of two subsidiaries, Koch Sulfur Products Company and
Koch Carbon Dioxide Company. He also served in key commercial and
corporate roles for several other Koch Industries subsidiaries.
Patrick Eurek also holds 36 years of industry experience and
brings RiverRock significant knowledge and expertise in crude oil
and refined products pipeline and terminal engineering, design and
project management, pipeline and terminal operations, products
movement, marketing and business development. Prior to RiverRock’s
formation, Mr. Eurek served as vice president of business
development at NuStar Energy, LP. He led the growth of NuStar's St.
James, Louisiana, terminal from approximately 3 million to more
than 9 million barrels of crude oil storage and oversaw the
construction of two crude oil unit train unloading facilities.
Prior to NuStar, Mr. Eurek was project manager for the construction
of Plains All American's new build crude oil terminal at St. James.
From 1998 to 2005 Mr. Eurek worked for Equilon and Shell Pipeline
Companies as director of business development leading various
pipeline and terminal projects.
A 15-year industry veteran, Keith Taylor has proven abilities in
strategic and business planning, marketing, business development,
financial analysis and pipeline operations. Like Mr. Schmidt and
Mr. Eurek, Mr. Taylor worked for NuStar and was also responsible
for creating new commercial business for the majority of NuStar’s
common carrier pipelines. Mr. Taylor’s recognized critical thinking
skills led to his selection as a valued member of a
multidisciplinary group responsible for NuStar’s long-term
strategic planning process. Prior to joining NuStar, he was asset
manager for two years with Calpine Corporation. Prior to Calpine,
he was with Air Liquide America for three years in various roles
within operations and commercial development groups in the large
tonnage pipeline segments.
About RiverRock Energy
Headquartered in San Antonio, RiverRock Energy, LLC provides oil
and gas producers with midstream solutions including gathering,
transportation and storage infrastructure for crude oil, water,
natural gas, natural gas liquids and other liquid hydrocarbon
products. The company is pursuing greenfield and acquisition
opportunities in emerging resource plays and other producing basins
across North America. www.riverrockenergyllc.com
About EnCap Flatrock Midstream
EnCap Flatrock provides value-added private equity capital to
proven management teams focusing on midstream infrastructure
opportunities across North America. Founded in 2008 by EnCap
Investments, LP and Flatrock Energy Advisors, the firm is based in
San Antonio, Texas, and Edmond, Oklahoma, and led by Managing
Partners William D. Waldrip, William R. Lemmons Jr., and Dennis F.
Jaggi. With more than 100 years of midstream experience, the
principals at EnCap Flatrock manage a dedicated professional staff
and midstream-focused investment commitments of nearly $3 billion
from a broad group of prestigious institutional investors. EnCap
Flatrock is currently making new management team commitments and
investing out of EnCap Flatrock Midstream Fund II, a $1.75 billion
fund. The firm expects to close a third fund at the end of April
2014. Visit www.efmidstream.com for more information.
TEN|10 GroupCasey Nikoloric, Managing Principal303-507-0510
mobile720-542-8832 office
(direct)casey.nikoloric@ten10group.com