[Context: On August 6, Austin-based WhiteWater Midstream, backed by Ridgemont Equity Partners, Denham Capital, First Infrastructure Capital and Ontario Power Generation Inc. Pension Plan, announced a joint venture with West Texas Gas and MPLX for an NGL pipeline in the Permian. Further details and related links are below.]
WhiteWater Midstream Announces Strategic Joint Venture to Provide Permian Basin NGL Transportation Solutions
August 06, 2020-AUSTIN, Texas–(BUSINESS WIRE)–WhiteWater Midstream (WhiteWater), MPLX LP (NYSE: MPLX) and West Texas Gas, Inc. (WTG) have recently formed a Joint Venture (JV) to provide natural gas liquids (NGLs) takeaway capacity from MPLX and WTG gas processing plants in the Permian Basin to the NGL fractionation hub in Sweeny, TX. WhiteWater Midstream’s Investment in the JV is backed by Ridgemont Equity Partners, Denham Capital Management and the Ontario Power Generation Inc. Pension Plan.
The JV will provide an optimized approach to pipeline transportation service for NGLs primarily through the utilization of existing infrastructure with limited initial construction. The solution will facilitate future, capital-efficient expansions that meet customer demands in a recovering basin. The JV is supported by volumes from key processing plants with long-term commitments from top-tier Permian producers.
As part of this NGL transportation solution, the JV has entered into multiple capacity arrangements from Orla, TX to Sweeny, TX including an agreement with EPIC Y-Grade Pipeline LP (EPIC) to own an undivided joint interest (UJI) in EPIC’s existing 24” NGL pipeline from West Texas to the Eagle Ford Basin.
About WhiteWater Midstream
WhiteWater Midstream is a management owned, Austin based midstream company. WhiteWater Midstream is partnered with multiple private equity funds including but not limited to Ridgemont Equity Partners, Denham Capital Management, First Infrastructure Capital and the Ontario Power Generation Inc. Pension Plan. Since inception, WhiteWater has reached final investment decision on ~$3 billion in greenfield development projects.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX’s assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.
WTG (West Texas Gas, Inc. & affiliates) is composed of a family of related natural gas midstream and downstream entities headquartered in Midland, TX since 1976 with operations in more than 90 Texas and Oklahoma counties. These WTG entities operate more than 900 MMcfd + of gas processing capacity with more than 10,000 miles of gathering systems, 1,800 miles of transmission pipelines and distribution systems serving approximately 25,000 LDC customers.
About Ridgemont Equity Partners
Ridgemont Equity Partners is a Charlotte-based middle market buyout and growth equity investor. Since 1993, the principals of Ridgemont have invested approximately $5.0 billion. The firm focuses on equity investments up to $250 million in industries in which it has deep expertise, including business and industrial services, energy and sustainable strategies, healthcare, and technology and telecommunications.
About Denham Capital Management
Denham Capital is a leading energy and resources-focused global private equity firm with more than $9.7 billion of committed capital across eleven fund vehicles and offices in Houston, Boston, London and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving oil and gas, power generation and mining, across the globe and all stages of the corporate lifecycle. Denham’s investment professionals apply deep technical, operational and industry experience and work in close partnership with management teams to achieve long-term investment objectives.