New midstream company Ironwood II launched with EnCap Flatrock’s backing

Ironwood Midstream Energy Partners has created Ironwood Midstream Energy Partners II (Ironwood II), a new Texas-based midstream company, supported by an initial capital commitment of $400 million from EnCap Flatrock Midstream and management.

Ironwood II will focus on developing midstream infrastructure for oil and gas producers engaged in shale plays across North America. The new midstream company will go after greenfield projects and acquisition opportunities in Texas.

Mike Williams – Chairman, President and CEO of Ironwood II said: “I’ve known and worked with EnCap Flatrock’s founder Bill Waldrip for three decades.

“The mutual trust and respect we share is an important foundation for a business partnership. Our values are aligned and so is our approach to creating value in the midstream sector. Ironwood II couldn’t ask for a better sponsor.”

New midstream company Ironwood II launched with EnCap Flatrock’s backing. Photo courtesy of supakitmod at FreeDigitalPhotos.net.

Ironwood II has started off its operations by signing a deal to acquire midstream assets in South Texas, that are owned and operated currently by Twin Eagle Gardendale Pipeline, a subsidiary of Twin Eagle Holdings. The deal is likely to be closed in December 2019.

Ironwood II will buy Twin Eagle’s Gardendale and Asherton gathering systems, which together currently are made up of 137 miles of active crude oil gathering pipeline having connections to various long-haul pipelines, to enable access to the US Gulf Coast, Three Rivers, and Houston markets.

Interconnects include Plains All American Pipeline, NuStar Logistics, Harvest Pipeline Company, and the EPIC Crude Oil Pipeline. The Gardendale and Asherton systems are spread over Dimmit and La Salle counties and are underpinned by long-term dedications totaling over 124,000 acres.

At the closing of the deal, Danny Rea – Twin Eagle Executive Vice President and Chief Operating Officer will join Ironwood II as chief commercial officer. The Ironwood II leadership team also includes Chief Operating Officer Josh Doramus and Chief Financial Officer Justin Johnson.

Bill Waldrip – EnCap Flatrock Managing Partner said: “We are excited to bring the Ironwood team into the EnCap Flatrock Midstream family.

“Mike Williams, Justin Johnson, Josh Doramus and Danny Rea have outstanding reputations and track records. We look forward to bringing more than capital by bringing our expertise and contacts to the table.”