Teak Midstream has secured a USD100m private equity investment from Natural Gas Partners, an energy private equity firm based in Irving, Texas.
Teak, a Dallas-based midstream start-up, will use the private equity investment to acquire and develop midstream assets in key gas producing areas of the US.
Teak Midstream is led by A. Chris Aulds and James R. Wales. Prior to starting Teak, they were two of the original three founders of Crosstex Energy, where they were instrumental in growing the company from a USD4m start-up in 1996 to a USD3bn publicly traded company at the time of their departure in 2007.
“Teak’s solid financial backing from Natural Gas Partners combined with our experience starting and growing midstream companies provides a unique blend of business acumen and access to capital,” says Wales.
Through strategic acquisitions and greenfield projects, Teak will provide midstream services including gathering, transmission, treating, processing, compression, marketing and price risk management. The company will initially focus on gas production areas in Texas, Louisiana, Oklahoma and Mississippi with anticipated geographic expansion based on customer needs.
“Jim and I look forward to working with industry colleagues again,” says Aulds. “The timing is right for a new customer service oriented midstream company with proven experience acquiring and developing midstream assets to support our customer’s growth plans. The capital investment from our private equity partner will assist in our ability to meet customer needs.”
