Blackstone Group LP’s $2 Billion Acquisition of EagleClaw Midstream Ventures LLC

Jefferies LLC acted as EagleClaw’s exclusive financial adviser in connection with the transaction and was the sole provider of the committed debt financing. The Jefferies team was led by Co-Head of Energy Investment Banking Peter Bowden. Blackstone was advised by Trevor Heinzinger of Morgan Stanley & Co. LLC and Skip McGee of Intrepid Partners LLC. Frost Brown Todd LLC served as legal counsel to EagleClaw with partner Edward W. Moore, Jr. in the lead role from the firm’s Dallas office. Thompson & Knight LLP represented EnCap Flatrock Midstream, with partner Sarah E. McLean in the lead role from the firm’s Houston office. Blackstone was represented by Vinson & Elkins LLP, whose team was led by partner Keith Fullenweider.

EagleClaw Midstream Ventures, LLC (“EagleClaw”) and its financial sponsor, EnCap Flatrock Midstream, announced today that they have entered into a binding agreement to sell the company to funds managed by Blackstone Energy Partners and Blackstone Capital Partners for approximately $2 billion. Blackstone Energy Partners is the energy-focused private equity business of Blackstone (NYSE: BX). The all-cash transaction is expected to close by the end of July 2017 and includes approximately $1.25 billion in stapled debt financing provided by Jefferies LLC.

EagleClaw is the largest privately held midstream operator in the Permian’s Delaware Basin in West Texas. The company’s assets are strategically located in Reeves, Ward and Culberson counties and include more than 375 miles of natural gas gathering pipelines and 320 million cubic feet per day (MMcf/d) of processing capacity with an additional 400 MMcf/d under construction. EagleClaw serves many of the region’s leading oil and gas producers, which have made to the company long-term dedications of natural gas volumes from more than 220,000 acres.

EagleClaw will retain its name and operate as a Blackstone portfolio company. The leadership team and fundamentally all of the company’s employees will remain in their current roles and are investing alongside Blackstone in this transaction.

Vinson & Elkins advised Blackstone Energy Partners with Keith Fullenweider, Bryan Loocke, Peter Marshall and Aaron Carpenter. Also advising were John Lynch, David Wicklund and Mark Brazzil.

Thompson & Knight has advised EagleClaw Midstream Ventures LLC with Sarah E. McLean (Picture), Nathan D. Meredith, Todd Lowther, Monica J. Raspino and Wesley P. Williams.

 

Involved fees earner: Keith Fullenweider – Vinson & Elkins LLP; Peter Marshall – Vinson & Elkins LLP; Aaron Carpenter – Vinson & Elkins LLP; David Wicklund – Vinson & Elkins LLP; Mark Brazzil – Vinson & Elkins LLP; John Edward Lynch – Vinson & Elkins LLP; Bryan Loocke – Vinson & Elkins LLP; Sarah McLean – Thompson Knight LLP; Nathan Meredith – Thompson Knight LLP; Monica Raspino – Thompson Knight LLP; Wesley Williams – Thompson Knight LLP; Todd Lowther – Thompson Knight LLP;

Law Firms: Vinson & Elkins LLP; Thompson Knight LLP;

Clients: Blackstone Energy Partners; EagleClaw Midstream Ventures LLC;

 

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Author: Ambrogio Visconti