Midstream LP to be taken private by PE firm

Evolve Transition Infrastructure LP is to be taken private by its General Partner. The GP will purchase the common units it doesn’t already own and the units will be delisted from the NYSE in mid-February. Evolve currently has a market cap of $11 million.

[Update 02-16-24 – The deal has been completed.]

The GP and its affiliates are owned by Stonepeak Partners, an infrastructure private equity firm. Combined they own 81.6% of the common units.

The primary asset of the business is a gathering system with 160 miles of gathering pipelines and four processing facilities It is located in the Eagle Ford basin.

The business went public as Constellation Energy Partners in 2006. At that time, it owned coalbed methane wells in Alabama. In 2015, Stonepeak invested in the business by helping it acquire the gathering system from Sanchez Energy for $346 million. The E&P assets were sold off and the business was renamed Sanchez Production Partners.

Sanchez Energy filed for bankruptcy in 2019, though the LP remained out of bankruptcy. However, the LP suffered cash flow issues and Stonepeak took full control of the GP in 2020. The remaining members of the Sanchez family exited the company, which was renamed to Evolve.

Evolve becomes the second Houston-area company in 2024 to announce plans to delist. Last week, the Chairman of Via Renewables said he would take the company private.

SEC filing – 8-K – Evolve going private


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