Fort Worth-based Clearfork Midstream to acquire Azure Midstream Energy in early 2022
Fort Worth-based oil and gas company Clearfork Midstream announced Tuesday it will acquire Azure Midstream by the end of the first quarter of 2022 as well as invest additional capital into Azure’s systems.
Clearfork was created in 2020 as a “growth-oriented” company to provide midstream solutions for oil and gas producers in basins across North America, specifically in the Haynesville/Bossier Shale formation in North Louisiana and East Texas, according to a news release.
The company has also secured a $400 million equity commitment from San Antonio-based EnCap Flatrock Midstream, which aligned with Clearfork on Azure’s growth potential, Clearfork CEO Kipper Overstreet said.
“Over the past few years, we have developed strong relationships with key members of the [EnCap Flatrock Midstream] team,” Overstreet said. “The firm’s unparalleled reputation is well deserved. They have the financial strength we need and understand midstream better than anyone in the venture capital business.”
Azure Midstream’s natural gas gathering and treating platform spans the core areas of the Haynesville Shale formation and includes over 500 miles of pipeline and 1.2 billion cubic feet per day of treating capacity across systems in North Louisiana and East Texas.
Zach Kayem, EnCap Flatrock Midstream managing director and Clearfork board of directors member, said part of EnCap Flatrock’s decision to pursue Clearfork’s opportunity in East Texas and North Louisiana was because of the management team.
“The management team possesses certain characteristics including strong leadership; the ability to attract and retain talent; a strong reputation and track record; and a compelling business plan, all of which we highly prioritize when backing a team,” Kayem said in the release.
