Humble Midstream LLC secured an initial capital commitment of $300 million from EnCap Flatrock Midstream, the Denver-based company said in a Dec. 1 release.
Formed in mid-2020, Humble Midstream is an independent energy company focused on acquiring and building midstream assets in conventional and unconventional plays across North America. Its goal is to create value by improving efficiencies and expanding the customer base of acquired businesses and/or building competitive new assets that serve the needs of the North American energy market.
Humble is led by CEO Steve Huckaby, a 38-year veteran of the midstream industry. Huckaby most recently served as chairman and CEO of Meritage Midstream, a company he helped launch in 2009 with backing by EnCap Flatrock.
“We arrived at the decision to back the Humble team based on a combination of factors,” said EnCap Flatrock Managing Director Tommy Waldrip, who is also a member of the Humble Midstream board of directors.
“We first partnered with Steve Huckaby in 2009 when we formed Meritage Midstream I together and believe he is one of the best leaders in midstream,” Waldrip continued. “He has built and been at the helm of four successful midstream companies, served in leadership positions at many others and has an excellent reputation across the energy industry.”
At Humble, Waldrip said Huckaby has put together and continues to build a highly experienced management team composed of executives with successful track records and complementary skill sets.
In addition to Huckaby, Humble leadership team comprises Chief Commercial Officer Tim Pimmel and CFO Ed Guay, who each have more than 30 years of experience in the midstream and energy finance and strategy industries, respectively.
“Finally, the Humble team shares our values and looks at the midstream opportunity set in a fresh way that aligns with the market,” Waldrip added.
Based in San Antonio with offices in Oklahoma City and Houston, EnCap Flatrock Midstream is a partnership between EnCap Investments LP and Flatrock Energy Advisors LLC. The firm is currently making commitments to management teams from EFM Fund IV, a $3.25 billion fund.
In a statement commenting on the commitment,
Huckaby described EnCap Flatrock as the nation’s premier provider of midstream growth capital having demonstrated its ability to be successful in changing markets since its formation in 2008.
“We are excited to partner with EnCap Flatrock to create a company that provides innovative midstream solutions that are safe, reliable, flexible and environmentally responsible,” he said.
King & Spalding LLP served as legal adviser to Humble Midstream for the transaction. Locke Lord LLP represented EnCap Flatrock Midstream.
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