BP Natural Gas Opportunity Partners LP, a private equity fund sponsored by energy industry leader T. Boone Pickens, has committed $20 million to Pinnacle Midstream LLC, a Houston-based midstream company that will primarily acquire and develop midstream assets and provide related services in key natural gas producing basins in the U.S.
Pinnacle is led by founder and CEO, J. Greg Sargent, who has over 30 years experience in operations and senior management in the natural gas midstream space. Prior to Pinnacle, he was founder and CEO of TransTex Gas Services, a natural gas treating and processing company that began in 2006 and within five years became the largest privately-held amine leasing business in the U.S. TransTex was sold to Eureka Hunter Holdings LLC in 2012. Sargent and a small group of industry leaders have committed an additional $5 million of capital to Pinnacle.
Pinnacle's business development efforts will be led by Hal Guttery. He is a veteran of the natural gas midstream sector with over 30 years industry experience, including corporate/commercial development, acquisitions and divestitures, strategic development and planning.
Through strategic acquisitions and greenfield projects, Pinnacle will provide midstream services to producers, including gathering, processing, treating and compression. Pinnacle will work closely with producers to increase their profitability by improving deliveries and pricing. Pinnacle anticipates focusing its operations in Texas, New Mexico, Louisiana, Oklahoma and Mississippi.
BP Partners, headquartered in Dallas, makes control investments in the energy sector by partnering with experienced and proven management teams. In addition to providing financing, BP Partners contributes strategic and industry expertise in support of its portfolio companies and partners.
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