Recent News and Announcements from Centre Partners
Leading Middle Market Private Equity Firm and Dallas Affiliate Partner with Industry Veterans to Capitalize Midstream Company Positioned for Growth
Dallas, Texas, January 16, 2007 – Centre Partners Management LLC and Centre Southwest Partners LLC, today announced their initial investment in the midstream segment of the energy industry with the formation of Nexus Gas Partners LLC and the acquisition of an established natural gas gathering and dehydration system in the active development regions of East Texas and Northern Louisiana.
Nexus Gas Partners LLC was established through a partnership between Centre Partners, Centre Southwest, and a management team brought together by them to lead this midstream initiative. Fritz Brinkman and Mike Davis, tenured executives with a range of complementary skills across the spectrum of midstream activities, will lead the optimization of existing Nexus assets and direct acquisition and organic growth projects that will broaden the Nexus activities across additional areas of exploration and development being pursued by the upstream industry. Brinkman and Davis collectively have over 55 years of industry experience managing intrastate and interstate assets across the onshore and offshore United States markets, including the operation of complementary dehydration, treating, and processing assets and the provision of other midstream-related services.
In early January, Nexus Gas Partners acquired Dominion Midstream Services, LP, which was previously a privately held company of the Dallas-based Dominion Gas Group. The acquired assets consist of the Logansport gathering and dehydration system (the Logansport system), which currently gathers approximately 100 million cubic feet of natural gas per day from the Joaquin Field in Shelby County and Panola County, Texas and the Logansport, Grand Cane, Spider and Benson Fields in DeSoto Parish, Louisiana. Dominion Gas Ventures, LP, another Dominion Gas Group entity and a long-standing participant in several segments of the energy industry, will continue to provide marketing-related services for several customers transporting volumes through the Logansport system.
Centre Partners is a leading middle market private equity firm with offices in New York, Los Angeles and Dallas through Centre Southwest. Centre Partners Managing Directors have invested over $3 billion of equity capital in more than 90 transactions in the past 20 years. Centre is investing in Nexus Gas Partners through its fourth fund, Centre IV, which has approximately $780 million of committed capital.
According to Centre Partners Senior Partner Scott Perekslis, the investment in Nexus Gas Partners creates an opportunity to build a high-quality, diverse portfolio of midstream assets through organic development and acquisitions.
We recognize an attractive investment opportunity in the midstream segment, given the compelling industry backdrop, positive capital deployment trends of the upstream customers of the segment, and strong, recurring cash flow attributes of many of the assets in this industry, said Perekslis. We believe we are well-positioned to take advantage of the significant growth opportunities afforded us from our initial acquisition and other initiatives under consideration. We stand ready to invest additional capital in Nexus Gas Partners to support and accelerate our midstream vision.
Fritz Brinkman, President of Nexus, said: We are excited to have the support and involvement of Centre Partners and Centre Southwest. They share our philosophy that, in this industry, the customer comes first, and we look forward to exploring opportunities to provide midstream solutions to our existing customers on the Logansport system and new customers in areas of future growth. The combination of a local presence, diverse energy experiences and significant capital for investment in our future growth makes Centre and Centre Southwest an ideal partner for Nexus Gas.