Denver, CO, New York, NY and London, UK (10 April 2015) – Meritage Midstream Services III, LP (“Meritage III”), a newly-formed, Denver-based midstream partnership today announced an equity commitment of up to $300 million from funds managed by energy private equity firm Riverstone Holdings LLC (“Riverstone”) to pursue midstream opportunities in Western Canada’s emerging resource plays. The initial Riverstone commitment of $100 million includes $67 million from Riverstone Global Energy and Power Fund VI and $33 million from Riverstone Energy Limited (“REL”).
Meritage III is led by Chairman and CEO Steven B. Huckaby and President Nicholas O. Thomas, industry veterans who have successfully established and led multiple midstream entities, including Meritage Midstream Services II LLC (“Meritage II”), an existing Riverstone Global Energy and Power Fund V investment. Meritage II provides oil and gas producers in the Powder River Basin with a full range of midstream services including natural gas gathering, compression, treating and processing; NGL treating and transportation; and crude oil gathering, handling and transportation.
“We are excited to expand our relationship with Riverstone and look forward to developing another midstream company together,” said Steve Huckaby, chairman and CEO of Meritage II and III. “We plan to continue our long-standing tradition of building strong, strategic partnerships with oil and gas producers. Our goal is to create a leading Western Canada-focused midstream company that provides the flexibility and optionality producers need to bring their hydrocarbon products from the wellhead to the most profitable markets.”
Baran Tekkora, Partner at Riverstone, said, “Our significant equity commitment to Meritage III reflects our confidence in Steve, Nick and the team they have assembled, as well as the opportunity set we see in Western Canadian midstream. We are excited to continue the Riverstone / Meritage partnership and look forward to Meritage’s continued success in the midstream industry.”