Private Equity firms EnCap Investments, Flatrock Energy Advisors and TPH Partners have announced the formation of Meritage Midstream Services. The company provides oil and gas producers with the full range of midstream services. Meritage's management team has over 100 years of combined experience and in an attempt to differentiate itself from the competition will focus on providing excellent customer service and integrated solutions, something they feel the industry is currently lacking.
In the past three years private equity firms have invested over $1 billion in 13 comparable midstream oil and natural gas services companies, according to the PitchBook Platform. A third of these companies have been platforms created by private equity firms like Energy Capital Partners and Charlesbank Capital Partners. Another third of the investments have been add-on acquisitions showing that these platforms and other PE-backed companies are finding attractive opportunities in the industry, especially in 2009, with nine completed deals.