Edgewater Finalizes Acquisition of Shell's Houston Assets
Deal News | Dec 03, 2024 | Encap Flatrock Midstream
Edgewater Midstream LLC, a part of EnCap Flatrock Midstream's portfolio, has completed the acquisition of the Sinco Pipeline system and two Colex terminals from subsidiaries of Shell USA. This acquisition fortifies Edgewater's position in the Houston refining corridor by integrating strategic infrastructure that includes intrastate pipelines and significant storage capacity, pivotal for refined products logistics. The assets provide connectivity to major pipelines like the Colonial and Explorer, underscoring their logistical importance in distributing refined products from the Gulf Coast to the Midwest. Baker Botts L.L.P. provided legal counsel to Edgewater for this transaction. Edgewater, since its inception in 2019, has sought to deliver independent midstream solutions, enhancing operational efficiency for marketers of crude oil and refined products. EnCap Flatrock Midstream, committed to building value in midstream infrastructure, supports these endeavors with investment strategies targeting growth opportunities across North America.
Sectors
- Midstream Infrastructure
- Oil & Gas
Geography
- United States – The acquisition concerns assets located in Houston, emphasizing the importance of this regional hub in the U.S. midstream oil and gas sector.
Industry
- Midstream Infrastructure – The acquisition involves midstream assets, including refined products pipelines and storage terminals. Edgewater Midstream operates in this sector, providing logistics solutions crucial for oil and refined products distribution.
- Oil & Gas – The transaction revolves around oil and gas logistics, specifically refined products, emphasizing the importance of pipeline and storage facilities in the energy supply chain.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Edgewater Midstream LLC | Acquirer | Company | A midstream infrastructure company focused on providing logistics solutions for refined products, crude oil, and other bulk liquids. |
| EnCap Flatrock Midstream | Investor | Company | A private equity firm providing growth capital for midstream infrastructure opportunities. |
| Shell USA, Inc. | Vendor | Company | The subsidiary of Shell involved in selling the Sinco Pipeline system and Colex terminals to Edgewater. |
| Baker Botts L.L.P. | Legal Advisor | Company | Provided legal counsel to Edgewater Midstream in the acquisition transaction. |