Energy Capital, Rimrock sign $160m partnership

The private equity firm will support the financing of Rimrock Midstream’s acquisition of El Dorado storage terminal through a $160m strategic partnership.

Dallas-based Rimrock Midstream has acquired the El Dorado storage terminal from a subsidiary of Enbridge Energy Partners, while at the same time entering a strategic financing relationship with private equity firm Energy Capital Partners (ECP), the companies said in a joint statement.

The partnership will enable Rimrock to expand funding up to an aggregate of $160 million to support its growth initiatives, according to the statement.

“Providing financing in support of the El Dorado acquisition is the first of many transactions that we hope to do together with Rimrock, as the company creates a leading midstream platform through a buy-and-build strategy,” said Nazar Massouh, who leads ECP’s energy-focused mezzanine investment activities.

Rimrock’s chief executive John Peterson described the storage facility as “a strong anchor asset for our midstream platform, while offering attractive organic expansion opportunities”.

Located just outside El Dorado, Kansas, the facility is an attractive storage and blending location for Kansas crude oil producers, which have experienced significant production growth in recent years, Rimrock said.

It has been a critical service provider to the nearby El Dorado refinery since the 1950s and has a storage capacity of 1.15 million barrels, according to the statement.

Rimrock was formed to acquire, develop, and operate a portfolio of midstream energy infrastructure assets. Since 2009, it has been acquiring, transporting, and storing crude oil in Oklahoma, Kansas, Texas, North Dakota, Wyoming, Colorado, and New Mexico.

Founded in 2005 and with over $8 billion in commitments, Energy Capital Partners focuses on investing in the power generation, midstream gas, electric transmission, environmental infrastructure and energy services sectors of North America’s energy infrastructure. The firm is based in Short Hills, New Jersey and has a second office in San Diego.