October 20, 2009
Delphi Midstream Partners Acquires Barnett Shale Gathering System
Delphi Midstream Partners, LLC (DMP) has acquired a natural gas gathering and compression system, the Mansfield System, located in Tarrant County, Texas from Carrizo Oil & Gas, Inc. (Carrizo). The Mansfield System has a current operating capacity of 70 mmcf per day and can be expanded to 90 mmcf per day with additional compression. In addition, DMP has the right to invest up to an additional $100 million to develop midstream infrastructure in Northeastern Pennsylvania in support of Carrizo's Marcellus Shale development plan.
Berenson & Co. acted as financial advisor to DMP for this transaction and Bingham McCutchen served as counsel to DMP.
DMP was founded by Thomas F. Karam and Michael J. Walsh with an equity commitment from American Securities, LLC (AS) in support of a strategy to invest in and acquire up to $2 billion of midstream energy sector companies and assets. Mr. Karam has more than 20 years of energy sector experience, most recently serving as President & COO of Southern Union Company (SUG), one of the largest natural gas pipeline companies in North America. Mr. Walsh was a partner and founding member of Highstar Capital before establishing DMP, where he was responsible for Highstar's investments in the midstream energy sector.
DMP is interested in midstream energy businesses and assets in North America requiring a minimum equity investment of $50 million. DMP typically seeks control positions, but will also consider joint ventures or influential minority interests. The DMP business model is to create long-term value in its investment companies through operational and commercial excellence, organic and strategic growth opportunities and management-investor alignment of interests.