© 2012 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
Private equity firms continue to invest big money in the oil patch, and that is good news for Texas energy lawyers.
The last deal came Wednesday, when Riverstone Holdings LLC teamed up with Kaiser Midstream to invest up to $500 million in Sage Midstream, LLC, a start-up midstream company that is based in Houston.
Sage will pursue greenfield development and acquisition opportunities to provide producers with the necessary midstream infrastructure to ensure reliable access to the highest value markets for their production.
Vinson & Elkins M&A partner Caroline Blitzer Phillips led the legal team for Riverstone, while Robert Bull of Tulsa, Oklahoma-based Frederic Dorwart represented Kaiser.
Riverstone has been involved in two other oil and gas deals this year. In July, the New York PE firm announced that it was investing up to $500 million in Meritage Midstream Services II LLC, a Colorado-based company that provides oil and gas producers with a full complement of midstream services. In May, Riverstone and Apollo Global Management closed its $7.15 billion acquisition of oil and gas exploration and production assets from El Paso Corp.
Blitzer Phillips also recently represented Warburg Pincus in connection with its formation of Hawkwood Energy. She also represented Penn Virginia Resource Partners, LP in its $1 billion acquisition of Chief Gathering and Buckeye Partners, LP in its $260 million acquisition of the Perth Amboy marine liquid petroleum products terminal in the New York Harbor.
Blitzer Phillips said that the significant advances in drilling technology and techniques in the energy sector have contributed to the reason more private equity firms are investing in the oil and gas industry.
“We are definitely seeing continued and increased interests by private equity firms in oil and gas activities,” she said. “This has not only resulted in greater drilling and production activity, but has also created opportunities for companies like Sage to pursue and develop midstream projects to facilitate delivery of these products to the markets.”
V&E tax law partner David Peck of Dallas and Houston employment and labor partner Sean Becker also played significant roles in the transaction. Evan Hofmann, Christopher Colquitt, Robert Jacobson and Stephen Jacobson of V&E’s Houston office also assisted with the deal.
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