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T. Boone Pickens invests in midstream company

T. Boone Pickens' PE fund is investing $20 million in Houston-based Pinnacle Midstream.
T. Boone Pickens invests in midstream company

Dallas-based BP Natural Gas Opportunity Partners (BP Partners), a private equity fund sponsored by energy industry leader T. Boone Pickens (pictured), has committed US$20 million to Pinnacle Midstream (Pinnacle). Pinnacle is a Houston-based midstream company that will primarily acquire and develop midstream assets and provide related services in key natural gas producing basins in the U.S.

Pinnacle is led by founder and chief executive officer, J. Greg Sargent, who has over 30 years of experience in operations and senior management in the natural gas midstream space. Prior to Pinnacle, he was founder and CEO of TransTex Gas Services, a natural gas treating and processing company that began in 2006 and within five years became the largest privately-held amine leasing business in the US. TransTex was sold to Eureka Hunter Holdings, LLC in 2012. Sargent and a small group of industry leaders have committed an additional $5 million of capital to Pinnacle.

Pinnacle's business development efforts will be led by Hal Guttery. Guttery is a veteran of the natural gas midstream sector with over 30 years industry experience, including corporate/commercial development, acquisitions and divestitures, strategic development and planning.

Through strategic acquisitions and greenfield projects, Pinnacle will provide midstream services to producers, including gathering, processing, treating and compression. Pinnacle will work closely with producers to increase their profitability by improving deliveries and pricing. Pinnacle anticipates focusing its operations in Texas, New Mexico, Louisiana, Oklahoma and Mississippi.

"I'm extremely excited to partner with BP Partners and its investment team," Sargent said. "I believe the industry experience of Pinnacle's management team combined with BP's investment expertise in the energy space will make a great partnership."

Alex Szewczyk, managing partner of BP Partners, said, "BP Natural Gas Opportunity Partners is very fortunate to have a management team with the breadth of experience that Greg and Hal bring to Pinnacle Midstream. We are excited to back a proven management team and believe the recent market dislocation provides an excellent opportunity to acquire quality midstream assets at attractive prices."

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