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Golden Gate Capital launches Stonehill Environmental Partners and acquires Waterfield Midstream assets


Today, leading private equity investment firm Golden Gate Capital announced it is launching an energy infrastructure platform called Stonehill Environmental Partners. Besides, the Company announced the acquisition of Waterfield Midstream’s assets, a provider of midstream infrastructure solutions in the Permian Basin.

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Golden Gate Capital on launching Stonehill Environmental Partners

Today, Golden Gate Capital announced it launched an energy infrastructure platform called Stonehill Environmental Partners. Additionally, the Company announced it acquired some of Waterfield Midstream’s assets in the Permian Basin.

In fact, Stonehill Environmental partners will be led by CEO Jay Parkinson, a long-time energy industry veteran, and former Golden Gate Capital Operating Executive. Moreover, with over $19 billion in cumulative committed capital, Golden Gate will be Stonehill’s anchor investor as it grows its infrastructure platform.

Therefore, Stonehill will provide energy infrastructure solutions to the upstream energy industry. For instance, by designing, building, owning, and operating fixed water pipelines. Also, it will do E&P activities at recycling and disposal assets looking to maximize efficiency and reduce the environmental footprint for oil and gas industry customers.

Accordingly, the Company will pursue both organic and inorganic growth strategies to facilitate scale expansion. Thus, M&A opportunities will include standalone assets. Besides, the Company will monetize existing E&P-owned water infrastructure assets, providing E&P companies the chance to re-deploy capital to core drilling and completion activities.

New Waterfield Midstream assets’ acquisition

Additionally, Golden Gate Capital announced it acquired Waterfield Midstream’s assets, a provider of midstream infrastructure solutions in the Permian Basin. In fact, Waterfield Midstream currently services Martin County in the Midland Basin behind long-term acreage dedication contracts.

Thus, these contracts include a permitted disposal capacity of approximately 250,000 barrels per day. Therefore, the addition of these assets marks the first acquisition of the Stonehill platform.

“We are excited for the opportunity to once again partner with Dave Thomas and the rest of the terrific Golden Gate Capital team. Moreover, we look to aggressively build out a larger water midstream pipeline and disposal system,” said Mr. Parkinson.

Similarly, Dave Thomas, Managing Director at Golden Gate Capital, said: “We have an outstanding relationship with Jay and the highly-respected Stonehill team. Furthermore, we are delighted to work with them again.”

In fact, Mr. Parkinson and the Company have a strong history of success with a prior venture, Hillstone Environmental Partners. Since 2015, Hillstone established itself as an industry-leading provider of comprehensive water infrastructure solutions. Besides, it had organic growth and a high-quality asset base that included long-term contracts with investment-grade E&P companies. However, NGL Energy Partners LP bought the Company for $600 million in October 2019.

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