Tradition Midstream has closed a USD200 million equity commitment from Denham Capital. The funding will help the company take advantage of the increasing need for new and expanded infrastructure required by the continued growth of natural gas, natural gas liquids and crude oil production in the United States today.
“There is a tremendous opportunity for an established midstream management group to assist producers and consumers in developing, constructing and operating infrastructure in emerging shale plays across the US,” says John O’Shea, CEO of Tradition. “Tradition’s team has an excellent track record of providing value-added solutions for our customers by serving as an extension of their company and providing timely, low cost and reliable gathering, processing and transportation services which will help bring natural gas, natural gas liquids and crude oil to market. We selected Denham as our capital partner because of their ongoing commitment to the producer community and their reputation as a knowledgeable and responsive collaborator in the energy sector. This partnership will allow us to become the midstream services provider of choice.”
Tradition’s management team of O’Shea, Don Brown, President, James Lee, CFO, Bryan Johnson, COO, and Mark Edge, VP, Land & ROW, has more than 100 years of combined experience in the midstream sector. Its principals have a proven record of value creation and first worked together in the 1990s at Natural Gas Clearinghouse/Dynegy before building Millennium Midstream Partners. Co-founded by O’Shea in 2002, Millennium became the fastest growing private energy company in America by 2007 and was ranked 63rd on the annual Inc. Magazine 500 list that same year. The following year, Millennium Midstream Partners was purchased by Eagle Rock Energy Partners.
By reuniting the Millennium team to form Tradition, the management group has focused on acquiring and enhancing existing assets along with developing new midstream assets with an emphasis on domestic shale plays.
“Denham is excited to partner with Tradition and is looking forward to assisting the Company’s continued growth,” says Bill Zartler, Managing Partner of Denham Capital. “We have known the Tradition principals for nearly two decades and witnessed the significant success of Millennium. This partnership builds on the success of Denham’s existing oil and gas portfolio and will provide crucial capital for US oil and gas infrastructure over the next decade.”
