Ironwood Midstream Energy Partners has created Ironwood Midstream Energy Partners II, a midstream infrastructure company for oil and gas producers in North America.
The company is supported by an initial capital commitment of $400 million from EnCap Flatrock Midstream. It is pursuing greenfield projects and acquisition opportunities, with a focus on opportunities in Texas.
Ironwood II also announced it has entered into a binding agreement to purchase midstream assets in South Texas currently owned and operated by Twin Eagle Gardendale Pipeline. The company will acquire Twin Eagle's Gardendale and Asherton gathering systems, which together currently include 137 miles of active crude oil gathering pipeline with connections to multiple long-haul pipelines, allowing access to the US Gulf Coast, Three Rivers and Houston markets. Interconnects include Plains All American Pipeline, Harvest Pipeline Company, NuStar Logistics and the upcoming EPIC Crude Oil Pipeline. The Gardendale and Asherton systems span Dimmit and La Salle counties and are supported by long-term dedications totaling more than 124,000 acres.
The transaction is expected to close in December 2019.
Bill Waldrip, a member of the Ironwood II board of directors, says: '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.'