EnCap Flatrock Midstream Completes Two Transactions with Plains All American

EnCap Flatrock Midstream (EFM) has announced the sale of Ironwood Midstream Energy Partners II and its Plains Series A Preferred Units to Plains All American (NYSE: PAA) for over $800 million in cash. The transactions, expected to close in Q1 2025, are subject to regulatory approvals.

Transactions net combined cash proceeds to EFM of over $800 million

SAN ANTONIO – EnCap Flatrock Midstream (“EFM”) today announced the execution of two separate definitive agreements to sell Ironwood Midstream Energy Partners II, LLC (“Ironwood II” or the “Company”) and all EFM-owned and outstanding Plains Series A Preferred Units to Plains All American, L.P. (NYSE: PAA) for over $800 million in cash. The transactions are expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals.

“This is an exciting time for the midstream industry, and we’re grateful for the opportunity to monetize our midstream investments and unlock value for our investors,” said EFM Managing Partner Gregory C. King. “Our focus every day is to be good partners, good stewards of our investors’ capital, and build great assets. We look forward to continuing to execute on that vision as we look ahead to the remainder of this year and beyond.”

Headquartered in San Antonio, Ironwood II is a premier crude oil gathering and transportation system with an expansive footprint servicing a diverse set of upstream customers operating in the Eagle Ford shale region of South Texas. The Company partnered with EFM in 2019 to pursue an Eagle Ford-focused consolidation strategy, and thanks to Ironwood II’s exceptional team, executed on that strategy to become a best-in-class midstream provider in South Texas.

Advisors
RBC Capital Markets served as financial advisor and Haynes Boone as legal advisor to Ironwood Midstream, and Wilkie Farr & Gallagher as EFM’s legal advisor. Piper Sandler served as financial advisor and Vinson & Elkins served as legal advisor to Plains All American.

About Ironwood Midstream Energy Partners II
Ironwood Midstream Energy Partners II (“Ironwood II”), a privately held midstream company based in San Antonio, Texas, specializes in the development of U.S. crude oil and natural gas gathering and transportation infrastructure. Leveraging its expertise, the Ironwood II team has successfully acquired and constructed nearly 500 miles of pipeline, covering approximately 200 miles within the core of the Eagle Ford Shale region in South Texas.

About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of over $9 billion from a broad group of prestigious institutional investors. For more information, please visit www.efmidstream.com.

Media Contacts
Kelly Kimberly / Nick Rust
FGS Global
kelly.kimberly@fgsglobal.com / nicholas.rust@fgsglobal.com
713.822.7538 / 917.439.0307

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Fund manager

EnCap Investments

Houston, Texas, United States

EnCap Investments is the leading provider of equity capital to the independent sector of the U.S. oil and gas industry. EnCap Investments’ ongoing story begins in 1988 when the firm was established by founders David B. Miller, Gary R. Petersen, D. Martin Phillips and Robert L. Zorich. Since then, EnCap has built 30-plus-year track record of successfully identifying economic investment opportunities in evolving markets. To date, EnCap has raised 25 institutional funds and more than $47 billion in capital commitments.

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