Coming off the successful sale of its position in the western Delaware Basin late last year, the management team behind Pinnacle Midstream is back with an investment from Dallas-based private equity firm Energy Spectrum Capital.

Pinnacle said April 9 it had received a “significant equity capital commitment” from management and Energy Spectrum Partners VIII LP, though didn’t disclose the value. The new commitment will form Pinnacle Midstream II to develop energy midstream infrastructure through organic greenfield projects, strategic producer partnerships and select acquisition opportunities.

Pinnacle Midstream II, based in Houston, will pursue midstream opportunities across North America, including a focus on the Permian Basin and the Eagle Ford Shale, according to the company’s website.

The company is led by J. Greg Sargent, Pinnacle founder and CEO. Sargent is an industry veteran with a 30-year track record including successfully founding and monetizing two previous private-equity-backed midstream companies.

Sargent formed Pinnacle Midstream in 2014 with a $20 million commitment from T. Boone Pickens’ Dallas-based private equity fund BP Natural Gas Opportunity Partners LP. The company turned that commitment into a crude and gas gathering position within the Delaware Basin of the Permian across West Texas’ Culberson and Reeves counties.

BP Energy Partners eventually sold Pinnacle in 2017 to private-equity firm I Squared Capital before the company reached its ultimate exit in a divestiture to EagleClaw Midstream Ventures LLC in November. The value of either transaction wasn’t disclosed.

At Pinnacle Midstream II, Sargent is joined by CFO Jason Tanous, COO Michael Hillerman and Chief Commercial Officer Drew Ward, each of which was part of the successful executive management team at the company’s predecessor Pinnacle Midstream, according to the company release.

Jim Benson, managing partner of Energy Spectrum, noted the firm has known Sargent and his team for many years and believe in the team’s experience and track record.

“We are confident that the Pinnacle team’s experience and track record of executing on midstream infrastructure projects while providing best-in-class service to its producer customers will provide the team with a strong foundation for future success in building a midstream company. We have known Greg and his team for many years and have admired their successes in the industry,” Benson said in a statement.

A team from the Houston office of law firm Locke Lord LLP comprised of Eric Larson, Bill Swanstrom, Freddy Feldman and Stefano Wach represented Pinnacle Midstream II in the commitment.

Emily Patsy can be reached at epatsy@hartenergy.com.

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