Nuevo Midstream, LLC, a Houston, TX-based newly formed midstream company, has secured $65m in equity commitments.
Investors include the EnCap Energy Infrastructure Fund, Torch Energy Advisors and Petroleum Fuels Company. Torch Energy will also provide management services and assets it co-owns with Petroleum Fuels, including the Ramsey gas gathering system, which consists of approximately 130 miles of natural gas gathering pipeline, compressor and measurement stations, and processing, fractionation, storage and loading facilities located in Reeves County, Texas.
The investment aims to support the formation of the company, which will focus on developing and operating midstream infrastructure for natural gas producers in the Permian Basin with specific emphasis on the Bone Springs and Wolfcamp formations and the Avalon Shale trend in southeast New Mexico and west Texas.
Nuevo Midstream’s management team will be led by Jay Lendrum, Torch Energy’s current president and COO. The senior leadership group includes:
– Randy Ziebarth, vice president of operations;
– Chris Work, vice president and chief financial officer; and
– Dwight Serrett, vice president of engineering and construction.