News Feed Item

Oryx Midstream Receives $300 Million Equity Commitment and Enters Permian Basin with Substantial Acreage Dedication

MIDLAND, Texas, April 9, 2014 /PRNewswire/ -- Oryx Midstream Services, LLC (Oryx) today announced it has received an equity commitment totaling up to $300 million from Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, Oryx management and other private investors. Oryx will pursue midstream opportunities in the Permian Basin, focusing initially on the Delaware Basin in Texas and New Mexico. The company expects to leverage its deep energy industry experience and build on strong relationships with oil and gas producers in the region to provide a full suite of midstream services.

Oryx has signed long-term, fee-based contracts with three exploration and production companies — one large, publicly traded independent company and two private Midland-based companies — to support their active drilling programs in the northern Delaware Basin. The three companies have dedicated to Oryx production from wells drilled within an area encompassing approximately 340,000 acres in Lea County, New Mexico. To accommodate production from the dedicated acreage, Oryx plans to initially construct up to 60 miles of rich gas gathering pipeline and up to 80 miles of crude oil gathering pipeline Construction is expected to begin this month and will be conducted in phases based on customer needs. The pipeline systems will provide customers with an integrated gathering service and will serve production from multiple formations including the Second Bone Spring, Third Bone Spring, Avalon/Leonard and Wolfcamp shales. Oryx also plans to pursue third-party volumes inside the acreage dedication area and more broadly across the basin.

Oryx is led by a management and advisory team with more than 145 years of experience in the energy industry and 100 years specific to the Permian Basin. Oryx CEO Brett Wiggs has extensive midstream leadership experience in the U.S. and abroad, having previously served as president and CEO of three energy companies. Most recently Wiggs served as CEO of DFW Midstream Services LLC, a natural gas gathering company focused in the Barnett Shale. Chief Financial Officer and Vice President of Business Development Karl Pfluger previously served as managing director at EnCap Flatrock Midstream where he helped originate new midstream investment opportunities and coordinate the ongoing growth activities of portfolio companies, including several in the Permian Basin. Oryx Vice President of Engineering and Operations Jamey Wasson, previously served as a senior process engineer at Midland-based BCCK Engineering and as a manager with Southern Union Gas.

Serving as executive advisors to the Oryx management team are Midland energy industry veterans Michael Black of Crown Oil Partners and Lea Crump of Crump Energy Partners. Black and Crump each has more than 35 years of oil and gas experience in the Permian Basin and bring a deep technical knowledge and understanding of the area.

"We are privileged to partner with financial firms like Quantum, Post Oak and Wells Fargo that recognize the value of the robust midstream opportunities in the Permian Basin," said Oryx Chief Executive Officer Brett Wiggs. "Their partnership coupled with this initial acreage dedication allow us to be one of the first movers in an area where we expect to see substantial growth. Our goal is to leverage this anchor position as we work with producers to develop custom midstream solutions and build much-needed infrastructure in the Delaware Basin."

"The Oryx team has a track record of success. Our equity commitment illustrates our confidence in their extensive midstream experience, reputation and customer-driven approach," said Garry Tanner, managing director of Quantum Energy Partners. "The Permian Basin is a thriving market with tremendous midstream opportunities, and we are enthusiastic about partnering with such a strong team based in Midland with deep roots in the area."

"We believe that the immediate and long-term fundamental midstream needs of the Permian Basin provide vast potential for growth and attractive returns," said Frost Cochran, Post Oak managing director. "The Oryx team is acutely aware of the challenges presented in this market and knows how to execute in a way that is flexible and aligns with producer needs and schedules. We look forward to supporting Oryx's growth."

About Oryx Midstream Services, LLC
Midland-based Oryx Midstream is focused on developing midstream infrastructure in the Permian Basin in New Mexico and Texas. Led by an experienced team with more than 145 years of experience in the oil and gas industry, Oryx is dedicated to providing producers with solutions and flexibility through a full suite of midstream services. For more information visit www.oryxmidstream.com.

About Quantum Energy Partners
Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates, more than $6.5 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com. For investor relations, please contact Michael Dalton at (713) 452-2000.

About Post Oak Energy
Post Oak, which was established in 2006, is an energy-focused private equity firm based in Houston. Its management team has executive management experience and a broad network in the energy business as well as significant expertise in private equity investments, operations, development, finance, acquisitions and divestitures. The firm pursues private equity investments primarily in the upstream sector of the oil and gas industry in North America and, to a lesser extent, in oil field services and related infrastructure. Post Oak works in close partnership with operating management teams to build businesses, accelerate growth and enhance shareholder value. Post Oak's website is www.postoakenergy.com.

About Wells Fargo Energy Capital
Headquartered in Houston, the Wells Fargo Energy Group, which includes Wells Fargo Energy Capital, is an energy finance leader providing integrated financial solutions to public and private companies across the upstream, midstream, downstream, services and power sectors. With more than 40 years of experience in the energy industry, the Wells Fargo Energy Group delivers comprehensive debt, equity, advisory, capital markets and traditional banking solutions to companies of all sizes and in all stages of development. For more about the Wells Fargo Energy Group, please visit www.wellsfargo.com/com/industry/energy.

SOURCE Oryx Midstream Services, LLC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.