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FORIMMEDIATERELEASE
BlackstoneEnergyPartnerstoAcquireEagleClawMidstreamVentures
MIDLAND,Texas–April17,2017–EagleClawMidstreamVentures, LLC (“EagleClaw”)and itsfinancialsponsor,EnCapFlatrockMidstream,announcedtodaythattheyhaveenteredintoabindingagreementtosellthecompanytofundsmanagedbyBlackstoneEnergyPartnersandBlackstoneCapitalPartnersforapproximately $2 billion. Blackstone Energy Partners is the energy-focused private equity business ofBlackstone(NYSE:BX).Theall-cashtransacYonisexpectedtoclosebytheendofJuly2017andincludesapproximately$1.25billioninstapleddebtfinancingprovidedbyJefferiesLLC.
EagleClaw is the largest privately held midstream operator in the Permian’s Delaware Basin inWestTexas. The company’s assets are strategically located in Reeves, Ward and Culberson counYes andincludemorethan375milesofnaturalgasgatheringpipelinesand320millioncubicfeetperday(MMcf/d)ofprocessingcapacitywithanaddiYonal400MMcf/dunderconstrucYon.EagleClawservesmanyoftheregion’s leadingoilandgasproducers,whichhavemadetothecompany long-termdedicaYonsofnaturalgasvolumesfrommorethan220,000acres.
EagleClawwillretainitsnameandoperateasaBlackstoneporcoliocompany.Theleadershipteamandfundamentally all of the company’s employees will remain in their current roles and are invesYngalongsideBlackstoneinthistransacYon.
CEOPerspecEve“ThistransacYonisaveryexciYngmomentinouradvancinggrowthstory,”saidEagleClawPresidentandCEO Bob Milam. “I am extremely proud of our team and grateful for our outstanding, five-yearrelaYonshipwithEnCapFlatrockMidstream.Wearevery fortunate tohavehadsuchagreatfinancialpartner. EnCap Flatrock brought consistent value to our strategic planning process. They helped usnavigate the opportuniYes and challenges of our early yearswith growth capital, technical experYse,decadesofcommercialexperienceandvaluablecontacts.
“As we begin a new chapter, we will conYnue to deliver the same outstanding level of service ourcustomers expect while we work with Blackstone to deploy addiYonal capital and to expand ourfootprintintheDelawareBasin.BlackstonehasadeepunderstandingofthecompellingfundamentalsoftheupstreamandmidstreameconomicsinthePermian,anoutstandingreputaYonasaninvestorintheenergysectorandthescaletotakeEagleClawtothenextlevel.WeareproudtohavetheirsupportandlookforwardtoalongandsuccessfulrelaYonship.”
FromEnCapFlatrockMidstream“We are pleased to join EagleClaw in announcing this realizaYon,” said EnCap Flatrock MidstreamManaging Partner and Founder Bill Waldrip. “Bob Milam and his team are to be commended fordevelopingaworld-classphysicalandcontractualplacorminthemostacYvebasininthecountry.ThesaletoBlackstonewillproducestrongreturnsforourinsYtuYonalinvestorsandrewardstheEagleClawteamformanyyearsofveryhardwork.WealsoappreciateBlackstone’sinterestanddiligenceinworkingwith us to reach an agreement that is beneficial for everyone at the table. We are confident that
EagleClawMidstream,LLC|414WestTexasAvenue,Suite315,Midland,Texas79701 � of21
BlackstoneistherightpartnertotakeEagleClawtothenextlevelandlookforwardtowatchingitsstoryevolve.”
FromBlackstoneEnergyPartners“Ourextensiveexperienceoverthepasttwodecadesasan investoracrossallsegmentsoftheenergysector,accesstocapitalonaverylargescaleandfirsthandknowledgeofthePermianasanownerofoilandgasproducers in this regionmakeBlackstoneuniquelywellqualified toacquireEagleClawand tobuild upon the solid foundaYon started with the investment of Bill Waldrip and the folks at EnCapFlatrockMidstream,” saidDavid Foley, SeniorManagingDirectorofBlackstoneandCEOofBlackstoneEnergy Partners. “BobMilam and his team have established excellent relaYonships with the leadingPermian-focused oil and gas companies. We are pleased to partner with management to ensureEagleClaw is well posiYoned to conYnue to serve the rapidly growing future needs of its expandingcustomerbase,creaYngaddiYonal jobs forAmericanworkersandprovidingsignificantbenefits to theeconomy.”
AdvisersJefferiesLLCactedasEagleClaw’sexclusivefinancialadviserinconnecYonwiththetransacYonandwasthe sole provider of the commijed debt financing. The Jefferies teamwas led by Co-Head of EnergyInvestmentBankingPeterBowden.BlackstonewasadvisedbyTrevorHeinzingerofMorganStanley&Co.LLCandSkipMcGeeofIntrepidPartnersLLC.
FrostBrownToddLLCservedaslegalcounseltoEagleClawwithpartnerEdwardW.Moore,Jr.intheleadrolefromthefirm’sDallasoffice.Thompson&KnightLLPrepresentedEnCapFlatrockMidstream,withpartnerSarahE.McLeanintheleadrolefromthefirm’sHoustonoffice.BlackstonewasrepresentedbyVinson&ElkinsLLP,whoseteamwasledbypartnerKeithFullenweider.
AboutEagleClawMidstream,LLCHeadquarteredinMidland,Texas,EagleClawMidstreamisamidstreamcompanyfocusedondevelopinginfrastructureopportuniYesinthePermianBasin.EagleClawprovidesnaturalgasproducerswithawidearrayofmidstreamservices includinggathering, compression, treaYng,processingand transportaYon.EagleClaw is ledbyPresidentandCEOBobMilam,ExecuYveVicePresidentandCOOCurYsClark,andExecuYve Vice President and CCO Blake Bixler. Visit www.eagleclawmidstream.com for moreinformaYon.
AboutEnCapFlatrockMidstreamEnCapFlatrockMidstreamprovidesvalue-addedgrowthcapitaltoprovenmanagementteamsfocusedonmidstream infrastructure opportuniYes across North America. The firm was formed in 2008 by apartnershipbetweenEnCap Investments L.P. and FlatrockEnergyAdvisors.Based in SanAntoniowithofficesinOklahomaCityandHouston,EnCapFlatrockisledbyManagingPartnersandFoundersWilliamD.Waldrip,DennisF.JaggiandWilliamR.Lemmons,Jr.,ManagingPartnersGregoryC.KingandDavidJ.Kurtz,andPartnerDennisMcCanless.Thefirmmanages investmentcommitmentsofnearly$6billionfromabroadgroupofpresYgiousinsYtuYonalinvestors.Wearecurrentlymakingcommitmentstonewmanagement teams from EFM Fund III, a $3 billion fund. For more informaYon please visitwww.efmidstream.com.
AboutBlackstoneEnergyPartnersBlackstone Energy Partners is Blackstone's energy-focused private equity business, with a successfulrecordbuiltonourindustryexperYseandpartnershipswithexcepYonalmanagementteams.Blackstonehasinvestedover$12billionofprivateequitygloballyacrossabroadrangeofsectorswithintheenergyindustry.
EagleClawMidstream,LLC|414WestTexasAvenue,Suite315,Midland,Texas79701 � of22
Blackstoneisoneoftheworld’s leadinginvestmentfirms.WeseektocreateposiYveeconomicimpactandlong-termvalueforourinvestors,thecompaniesinwhichweinvest,andthecommuniYesinwhichwe work. We do this by using extraordinary people and flexible capital to help companies solveproblems. Our asset management businesses, with over $360 billion in assets under management,include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all ona globalbasis. Further informaYon isavailableatwww.blackstone.com.FollowBlackstoneonTwijer@Blackstone.
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MediaContactsForEagleClawMidstreamVentures&EnCapFlatrockMidstream:CaseyNikoloricManagingPrincipalTEN|10Group303.433.4397x101o|[email protected]
ForBlackstone:PaulaChirhartSeniorVicePresident,GlobalPublicAffairs212.583.5011o|[email protected]
EagleClawMidstream,LLC|414WestTexasAvenue,Suite315,Midland,Texas79701 � of23
