Lotus Midstream LLC said Feb. 13 it secured an initial capital commitment of $400 million from EnCap Flatrock Midstream and the Lotus management team.
Lotus, a crude oil logistics provider based in Sugar Land, Texas, is focused on the organic development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to market, including crude gathering, transportation and storage. Lotus said it is also pursuing strategic acquisition opportunities.
The company was established in early 2018 by CEO Mike Prince, Chief Commercial Officer Emily Baker and COO Jen Fontenot.
Together, Lotus' founding partners have more than 55 years of combined energy industry experience, according to the company press release. Prior to establishing Lotus, they worked together for five years as key members of the business development team at Sunoco Logistics Partners LP (now Energy Transfer Partners LP), where they executed projects and acquisitions in excess of $2 billion.
“We look forward to building Lotus Midstream with a focus on high-growth areas in the Permian Basin and the Midcontinent, where we see multiple opportunities and have an established track record, a thorough knowledge base and strong relationships,” Prince said in a statement.
"We are extremely pleased to be partnering with the Lotus team,” said EnCap Flatrock Managing Partner Greg King in a statement. “Mike, Emily and Jen are recognized leaders in crude oil logistics with outstanding reputations in the producer community and impressive commercial and operational skills. They understand that midstream success begins with upstream success and have a long-term plan that is focused on creating value for their customers. We look forward to supporting the company as it pursues its strategy."
King is also a member of the Lotus board of directors.
Lotus was advised by former Sunoco Logistics General Counsel Kathleen Shea-Ballay. Matthew Falcone with Vinson & Elkins LLP’s Houston office also provided legal counsel to the company. EnCap Flatrock Midstream was advised by Thompson & Knight LLP, with partner Sarah McLean leading the team from the firm’s Houston office.
EnCap Flatrock Midstream was formed in 2008 by a partnership between EnCap Investments LP and Flatrock Energy Advisors LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion, according to the release.
Recommended Reading
Wayangankar: Golden Era for US Natural Gas Storage – Version 2.0
2024-04-19 - While the current resurgence in gas storage is reminiscent of the 2000s —an era that saw ~400 Bcf of storage capacity additions — the market drivers providing the tailwinds today are drastically different from that cycle.
Ozark Gas Transmission’s Pipeline Supply Access Project in Service
2024-04-18 - Black Bear Transmission’s subsidiary Ozark Gas Transmission placed its supply access project in service on April 8, providing increased gas supply reliability for Ozark shippers.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.
Scathing Court Ruling Hits Energy Transfer’s Louisiana Legal Disputes
2024-04-17 - A recent Energy Transfer filing with FERC may signal a change in strategy, an analyst says.
Balticconnector Gas Pipeline Will be in Commercial Use Again April 22, Gasgrid Says
2024-04-17 - The Balticconnector subsea gas link between Estonia and Finland was damaged in October along with three telecoms cables.