Quantum Energy Partners Announces the Combination of Xplorer Midstream LLC and Intensity Midstream LLC and the 200 MMcf/d Expansion of its Grady Processing Plant
Houston, TX - Oklahoma City, OK - Tulsa, OK – November 8, 2016 – Quantum Energy Partners (“Quantum”) is pleased to announce the combination of two of its portfolio companies – Xplorer Midstream LLC (“Xplorer”), owner and manager of Woodford Express, LLC (“Woodford”), and Intensity Midstream LLC (“Intensity”). As a result of the combination, employees of Xplorer will join Intensity to create a best-in-class midstream team with a mandate to drive additional growth initially in central Oklahoma but also across multiple basins throughout the United States.
Roger Farrell (“Farrell”), CEO of Xplorer, will join the Intensity Board of Directors (“Board”) as Chairman. Joe Griffin (“Griffin”), co-founder and CEO of Intensity, and Derek Gipson (“Gipson”), co-founder and CFO of Intensity, will assume all CEO and CFO-related duties for the combined entities. Prior to forming Intensity, Griffin and Gipson most recently served as President and CEO and Executive Vice President and CFO, respectively, for Hiland Partners, LP. Intensity will continue to be headquartered in Tulsa, OK and will also maintain Xplorer’s office in Oklahoma City, OK.
“This combination is truly a win-win for Xplorer, Intensity, our customers, investors and employees,” said Farrell. “Intensity provides a platform allowing for a growing presence in the prolific SCOOP play and for expansion into other resource plays throughout the United States.”
The key assets of Xplorer currently include 210 MMcf/d of cryogenic gas processing capacity in the heart of the SCOOP play in Grady County, OK (the “Grady Plant”), 5,000 Bbls/d condensate stabilization capacity, 210 MMcf/d of amine treating capacity, 34 miles of 16-inch and 20-inch mid-pressure gathering trunk lines in Grady and Stephens Counties, 68 miles of associated gathering laterals and 3,000 HP of field compression.
In conjunction with the combination, the Intensity and Xplorer Boards have approved a 200 MMcf/d expansion of the Grady Plant to support increased drilling activity in the SCOOP play from Woodford’s existing and future customers. After completion of the expansion, which is expected to be online in the fourth quarter of 2017, the Grady Plant will have approximately 410 MMcf/d of processing capacity, with the site being designed to accommodate another 200 MMcf/d processing train as production growth continues.
“The 200 MMcf/d expansion of the Grady Plant demonstrates Quantum’s long-term commitment to providing key midstream infrastructure for the producers in the SCOOP play. We are currently evaluating other key projects to further grow the existing platform, including additional processing and natural gas gathering expansions, low pressure gathering, residue pipeline solutions and crude oil and condensate gathering services. Our number one objective is to continue providing safe, reliable and competitive natural gas and crude oil midstream services to current and future upstream customers,” said Griffin.
About Xplorer Midstream LLC
Xplorer Midstream LLC is a Quantum-backed midstream company headquartered in Oklahoma City, Oklahoma, focused on developing natural gas gathering/processing and crude oil solutions in the SCOOP and other resource plays throughout the country. Its focus is to develop and execute safe and reliable midstream projects that allow its customers and partners to achieve their objectives and optimize financial and operational results. Through its subsidiary, Woodford Express, LLC, Xplorer is operating and developing natural gas gathering, treating and processing facilities in the SCOOP play. For more information on Xplorer, please visit www.xplorermidstream.com.
About Woodford Express, LLC
Woodford Express, LLC is a subsidiary of Xplorer Midstream with natural gas assets in the SCOOP play of Southern Oklahoma’s Woodford Shale and Springer Shale. Woodford’s assets provide competitive solutions for gas gathering and processing solutions to producers operating in the region.
About Intensity Midstream LLC
Intensity Midstream LLC is a Quantum-backed midstream company headquartered in Tulsa, Oklahoma. Intensity constructs, develops, acquires, enhances and operates gathering, treating, processing, storage, transportation and other midstream assets across select North American basins. For more information on Intensity, please contact Derek Gipson at (918) 949-9147 or visit www.intensitymidstream.com
About Quantum Energy Partners
Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed, together with its affiliates, more than $11 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com. For investor relations, please contact Michael Dalton at (713) 452-2000.