Private Equity Seeks Solace in Midstream amid Oil Price Slump
Next Wave Energy Partners LP. Nuevo Midstream Dos LLC. Moda Midstream LLC. In addition to being mostly midstream partnerships, the three have emerged in recent weeks with infusions of private equity capital – an unexpected development in a market where oil prices have plummeted by more than half.
But some sectors, especially the midstream, continue to attract private equity, despite the complications of $50 oil.
There is no shortage of energy private equity capital available, David King, managing partner at U.S. Capital Advisors in Houston, said.
Next Wave opened with $500 million from Energy Capital Partners. EnCap Flatrock Midstream has invested $400 million and $750 million, respectively, in Nuevo and Moda.
Strong demand for North American bulk liquids storage infrastructure, especially facilities with import-export deepwater capabilities is the foundation beneath Moda Midstream, said CEO Ken Owen in a statement. EnCap’s faith in the company gives the team financial flexibility to build an integrated logistics platform through greenfield projects and asset acquisitions.
King said there’s a tremendous amount of private equity dry powder, or money that has already been raised, available.
“Certainly more than we’ve seen in a long while. If you look just at the energy and energy infrastructure-focused private equity credit funds that have recently closed or are currently in the market, we get an estimate of $80 billion of dry powder,” he said.
What’s more, that figure doesn’t include the large generalist buyout funds that allocate a portion of their capital toward energy and it also excludes leverage.
1234
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- The Rigzone Interview: Private Equity Cash Focuses on Oil, Gas Development
- Could Argentinian Politics Beat the Vaca Muerta?
- The Rigzone Interview: Oil, Gas Goes Digital for Safety, Speed
- Deal Of The Month: EQT, Rice Energy Merge in Mega Marcellus $6.7B Gas Deal
- OpEd: OPEC Production Cuts Fail, Markets Pay for Underestimating US Shale
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension