Riverstone, Kaiser launch $500m oil and gas investment vehicle


Energy-focused private equity house Riverstone Holdings has teamed up with oil and gas services company Kaiser Midstream to create a $500m natural gas liquids investment company.

Sage Midstream plans to capitalise on the growing interest in liquids-rich gas production in North America through new infrastructure development and acquisitions.

A joint statement from Riverstone co-founders Pierre Lapeyre and David Leuschen said, “Sage is a great example of Riverstone’s approach to growth capital investing, which involves identifying high-quality management teams and providing the capital to help them start new businesses in attractive markets.

“The Sage team we are partnering with has deep relationships and a successful track record of project development in the NGL midstream sector.”

That team is led by former Lone Star NGL executive vice president Greg Bowles, who has been made president of the new company, and president of business development John Steen.

Combined with vice president of engineering and operations Nick Cocavessis the trio have more than 50 years of experience in acquisition, development, construction and operation of NGL-related infrastructure.

The move comes two months after Riverstone invested $500m in Meritage Midstream Services II to develop North American gas projects.

Meritage II said it hoped to capitalise on the boom in shale gas production across the continent by providing pipelines and other midstream infrastructure through both acquisitions and new developments.

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