New agreement and partnership boost Advantage Midstream

By Advantage Midstream | October 02, 2017

Advantage Midstream LLC, a Dallas-based independent, midstream and gas-to-liquids focused oil and natural gas company, has reached an agreement with funds managed by Castlelake LP to serve as its primary equity sponsor.

Castlelake is a global private investment firm managing private funds and debt vehicles with more than $10 billion in assets. In addition to the sponsorship of Castlelake funds, Advantage Midstream also announced it has partnered with Sacramento, California-based technology provider Greyrock Energy Inc. and its affiliates.

Advantage Midstream is focused on opportunities in the Permian Basin, Appalachia, Rockies, Bakken shale, Mid-Continent and Gulf of Mexico, as well as other producing basins. The company offers a variety of services, including natural gas conversion, natural gas gathering, processing, treating and compression; crude oil and condensate gathering, transportation and marketing; freshwater delivery and produced water disposal; and other oil and gas midstream services.

Advantage Midstream was founded to provide producers and processers with gathering, processing and conversion solutions for natural gas and natural gas liquids that might be lacking proper infrastructure or that are geographically constrained. Advantage and Greyrock work together to deploy the Direct Fuel Production gas conversion systems that create road-ready, low-environmental impact motor fuels from natural gas, natural gas liquids, and waste gas.

John Stephenson, CEO of Advantage Midstream said, "Castlelake funds' sponsorship and our partnership with Greyrock Energy Inc. provide Advantage with resources and access that will enhance our ability to meet the needs of producers and processors. Through the combination of traditional energy infrastructure, proprietary gas conversion technologies and a customer-centric approach, Advantage Midstream is poised to unlock significant value and increase returns for its customers from down hole to downstream."

Evan Carruthers, managing partner at Castlelake, said, "By sponsoring Advantage Midstream, Castlelake funds' are able to invest in oil and gas infrastructure through innovative gas-to-liquids conversion systems. This investment aligns with our focus on asset-rich, scalable opportunities within niche markets, and we believe that the Advantage team's expertise and unique systems position it to be a reliable midstream platform for producers and processers across market cycles."