DENVER, July 30, 2015 /PRNewswire/ -- Platte River Equity ("Platte River") today announced its follow-on investment in First River Energy, LLC ("First River") to facilitate the acquisition of Texas Gathering, LLC and related assets (collectively, "Texas Gathering" or the "Company"). The transaction represents the first acquisition by First River since Platte River's initial investment in July 2014.
Founded in 2002, Texas Gathering is a crude oil marketing and logistics company focused on servicing smaller independent oil producers. The Company gathers, markets and blends approximately 23,000 barrels per day of crude oil, primarily in the Permian and Eagle Ford regions in Texas. Through its relationships with pipeline companies, refineries and large integrated oil and gas companies, Texas Gathering is able to connect its customers to markets that are largely inaccessible to small producers.
"Platte River invested behind the First River management team a year ago to leverage its relationships in pursuit of acquisitions in the midstream energy sector," commented Managing Director Peter W. Calamari. "Consistent with this thesis, the acquisition of Texas Gathering establishes a solid platform from which the Company can continue to build a large and diverse midstream energy company."
"Texas Gathering will continue its position as a key logistics partner in an underserved market," said First River Founder and CEO Johan Themaat. "The Company's average crude supplier, which produces fewer than 1,000 barrels per day, has limited alternatives for getting its product to market. Texas Gathering has been and will continue to be a valued partner to these producers as the Company helps create a market for their customers' oil and provide the final logistics solution to deliver the oil to large mainstream pipelines and refineries."
Texas Gathering company owner, Travis Davis, and his management team have joined First River as part of this transaction.
About Platte River Equity
Based in Denver, Colorado, Platte River Equity is a private equity firm that invests in lower middle market operating companies with enterprise values between $20 million and $250 million. The firm focuses on three targeted industry sectors where it has deep operating and investing experience including aerospace and transportation; energy and industrial products and services; and chemicals, metals, minerals and agriculture. Platte River Equity has raised funds with committed capital in excess of $700 million. For more information, visit www.platteriverequity.com.
About First River Energy
First River Energy is a Denver-based crude oil midstream company focused on evolving energy logistics through seamlessly connecting producers to markets. For more information visit www.FirstRiverEnergy.com
SOURCE Platte River Equity