- The founders of Tall Oak Midstream (“Tall Oak”) have formed Tall Oak Midstream III, LLC (“Tall Oak III”) with an initial equity commitment of $200 million from EnCap Flatrock Midstream and management.
- Tall Oak III will pursue midstream opportunities across North America outside the Northwest portion of Oklahoma’s STACK play.
OKLAHOMA CITY–(BUSINESS WIRE)–#midstream—Tall Oak Midstream, LLC (“Tall Oak” or “the Company”) today announced that its founders have formed Tall Oak Midstream III, LLC (“Tall Oak III”) with an initial equity commitment of up to $200 million from private equity firm EnCap Flatrock Midstream (“EnCap Flatrock”) and Tall Oak management. In January 2016, Tall Oak sold its first venture to EnLink for $1.55 billion. At that time, the Company already had formed Tall Oak Midstream II, LLC (“Tall Oak II”). Tall Oak II will continue to focus on operating and expanding its midstream assets in the Northwest STACK play. The new company, Tall Oak III, will pursue midstream opportunities across North America outside the Northwest STACK. The formation of Tall Oak III continues to leverage the management team’s deep midstream experience and successful track record and builds on Tall Oak’s strong relationships with oil and gas producers.
The Tall Oak II and Tall Oak III companies are led by Tall Oak’s four founders: President and CEO Ryan Lewellyn; Chief Commercial Officer Carlos P. Evans; Chief Financial Officer Max J. Myers; and Chief Operating Officer Lindel R. Larison. The $200 million equity commitment to Tall Oak III is the third commitment EnCap Flatrock has made to the Tall Oak management team and brings total financing for Tall Oak II and Tall Oak III to more than $600 million.
“EnCap Flatrock Midstream is an outstanding financial partner, and our ongoing relationship has been extremely successful. Our collaboration has allowed us to deliver world-class midstream solutions and service to our customers. We look forward to building on the success we’ve had together and anticipate further announcements about Tall Oak III in the near future,” said Tall Oak President and CEO Ryan D. Lewellyn.
From EnCap Flatrock Midstream
“EnCap Flatrock is proud to partner again with the Tall Oak management team by supporting Tall Oak III,” said EnCap Flatrock Managing Partner Dave Kurtz, a member of both the Tall Oak II and Tall Oak III boards of directors. “Tall Oak’s management team is effective at producing results for its customers in a very short period of time. They perform at the highest level every single day and come in on time and on budget with creative solutions that provide producers with optionality and the highest possible netbacks.”