HOUSTON–(BUSINESS WIRE)–Palmilla Energy LLC (“Palmilla”), a Houston-based company, today announced its formation to manage and develop midstream assets. Palmilla is backed by funds managed by Oaktree Capital Management, L.P. (“Oaktree”).
Palmilla provides a full suite of midstream and marketing services to oil and gas producers throughout the United States and is led by seasoned energy executive Rich DiMichele, who formerly ran the midstream efforts for both Petrohawk Energy and Halcón Resources. While at Petrohawk Energy and Halcón Resources, Mr. DiMichele oversaw the development and ultimate sale of over $2 billion of midstream assets. Additional Palmilla executives include Travis Boeker as EVP- Commercial and Business Development, Scott Grahmann as EVP-Accounting, Finance and Administration and David Wright as EVP-Operations and Construction. The combined management team has over 60 years of energy-related experience and has been involved in the development, acquisition, operations, turnarounds and divestitures of numerous energy assets and companies.
“I’m excited about the prospects we’re seeing in our industry right now. Alongside Oaktree’s expertise, we’ve put together a team at Palmilla that can capitalize on the opportunities the energy cycle currently presents,” said Mr. DiMichele. “The key is to execute win-win deals for us and our customers. One of the things that differentiates us is that we’ve proven we can create tremendous value for stakeholders on both sides of the table.”
Initially, Palmilla will manage the Wildcat Caddo system owned by Highstar IV, a fund managed by Oaktree, in northwest Louisiana.
“Producers in northwest Louisiana seem to be increasing their activity, and we think that a recently constructed cryogenic processing plant and gathering system, in the core of the Cotton Valley can add tremendous value to those producers,” said Mr. Boeker. “Having an unlevered asset with a strong financial partner in Oaktree creates the flexibility to enter into successful deals that work both right now and when gas and NGL prices recover. We’re very excited about the prospects for Wildcat Caddo.”
“We are excited to be partnering with the Palmilla team, as we believe they bring a strong history of experience and execution across a number of different opportunities in the midstream sector. We value their operational expertise and their customer-focused approach as a foundation to develop best-in-class midstream businesses throughout the U.S., with a particularly strong focus in Louisiana and East Texas (the site of our Caddo facility),” said Bret Budenbender, Oaktree Managing Director.
Oaktree is a leader among global investment managers specializing in alternative investments, with $98 billion in assets under management as of June 30, 2016. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.