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Category: Press Releases



November 16, 2017

Converge Midstream Partners, LLC’s Houston

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Converge Midstream Partners, LLC’s Houston Crude Oil Storage Facility Commences Commercial Operations

Houston (April 13, 2017) – Converge Midstream, LLC  today announced that it has commenced initial commercial operation at its Pierce Junction Crude Oil Storage Facility. The project will serve the Houston area’s crude oil storage needs driven by the significant growth of pipeline-delivered crude oil into and through the Houston market. Converge Midstream began construction in 2015 to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out the supporting infrastructure to put the facility into commercial service.

The recently completed phase of construction (Phase 1A) allows for the storage of crude oil in three segregated caverns that have a total capacity of approximately 7.5 million barrels. Converge Midstream constructed brine ponds with approximately 6.5 million barrels of capacity and central pumping and metering facilities at the site.

Phase 1A also included the construction of two separate bi-directional, 24-inch pipelines that will connect the facility to the existing Houston area crude oil grid. The pipelines connect the facility to the Genoa Junction and Speed Junction hubs. This is expected to enable Converge Midstream to receive inbound crude oil from the Permian and Eagle Ford Basins, the Mid-Continent and Canadian regions as well as the Gulf of Mexico. The hubs also are expected to provide downstream connectivity to terminals, refineries and water outlets located in the Houston Ship Channel, Texas City and the Beaumont/Port Arthur market areas.

The facility’s initial operating capacity is 70 percent subscribed. Now that Converge Midstream has commenced operations, it is beginning to store crude oil for its customers, and Converge Midstream is pursuing efforts to reach its full initial operating capacity.“We believe Converge Midstream’s facility is responding to what our customers want and what the Houston market needs: a more efficient crude oil market, which will result in lower costs for storing and shipping crude oil,” said Converge Midstream’s CEO, Chris Hilgert. “We look forward to providing agile and flexible services that enhance our customers’ market positions.”

Construction of Phase 1B, which will increase the physical storage capacity by approximately 2.6 million barrels to 10.1 million barrels and increase brine pond capacity to an equivalent capacity. That project is expected to commence in the second half of 2017, depending on customer commitments.

About Converge Midstream, LLC Houston-headquartered Converge Midstream LP is a growth-oriented crude oil storage business focusing on constructing and placing into service the Pierce Junction Crude Oil Storage facility. The business is strategically positioned as the only independent salt dome crude oil storage terminal in the greater Houston market area. Converge Midstream’s website is www.cvmidstream.com. For additional information on contracting for storage capacity, contact Bobby Salehi, Vice President of Corporate Development, at Bobby.Salehi@cvmidstream.com, 713.559.1529.

### Forward-Looking Statements. This press release includes “forward-looking statements.” Such statements may include, but are not limited to, statements about Converge Midstream’s future financial and operating results as well as Converge Midstream’s plans, objectives, expectations, and intentions. Forward-looking statements are generally, but not always, accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “should,” “may,” “will,” plan,” “goal,” “can,” “could,” “continuing,” “ongoing,” “intend,” or other words that convey the uncertainty of future events or outcomes. While Converge Midstream’s management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Converge Midstream’s control. These and other important factors may cause Converge Midstream’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any or all of the forward-looking statements in this press release may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by Converge Midstream or any other person that the future plans, estimates or expectations contemplated by Converge Midstream will be achieved. Converge Midstream has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect the development of the proposed storage caverns, its financial condition, results of operations, business strategy and financial needs. There are important factors that could cause Converge Midstream’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-look statements including, but not limited to , adverse regional, national or international economic conditions; changes in the marketplace for Converge Midstream’s products or services, such as increased competition, better energy efficiency, or general reductions in demand; changes in the availability and cost of capital; unanticipated capital expenditures in connection with the construction, repair, or replacement of Converge Midstream’s assets; operating hazards, natural disasters, terrorism, weather-related delays, adverse weather conditions, including hurricanes and natural disasters, environmental releases, casualty losses and other matters beyond Converge Midstream’s control that interrupt Converge Midstream’s operations; and the effects of existing and future laws and governmental regulations to which Converge Midstream is subject.

For more information contact: Kelly Kimberly 832.680.5120 kkimberly@sardverb.com

April 13, 2017

Fairway Energy LLC’s Houston Crude Oil Storage Facility Commences Commercial Operations

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Fairway Energy Partners, LLC’s Houston Crude Oil Storage Facility Commences Commercial Operations.

Houston (April 13, 2017) – Fairway Energy Partners, LLC today announced that it has commenced initial commercial operation at its Pierce Junction Crude Oil Storage Facility. The project will serve the Houston area’s crude oil storage needs driven by the significant growth of pipeline-delivered crude oil into and through the Houston market. Fairway Energy began construction in 2015 to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out the supporting infrastructure to put the facility into commercial service.

The recently completed phase of construction (Phase 1A) allows for the storage of crude oil in three segregated caverns that have a total capacity of approximately 7.5 million barrels. Fairway Energy constructed brine ponds with approximately 6.5 million barrels of capacity and central pumping and metering facilities at the site.

Phase 1A also included the construction of two separate bi-directional, 24-inch pipelines that will connect the facility to the existing Houston area crude oil grid. The pipelines connect the facility to the Genoa Junction and Speed Junction hubs. This is expected to enable Fairway Energy to receive inbound crude oil from the Permian and Eagle Ford Basins, the Mid-Continent and Canadian regions as well as the Gulf of Mexico. The hubs also are expected to provide downstream connectivity to terminals, refineries and water outlets located in the Houston Ship Channel, Texas City and the Beaumont/Port Arthur market areas.

The facility’s initial operating capacity is 70 percent subscribed. Now that Fairway Energy has commenced operations, it is beginning to store crude oil for its customers, and Fairway Energy is pursuing efforts to reach its full initial operating capacity.“We believe Fairway Energy’s facility is responding to what our customers want and what the Houston market needs: a more efficient crude oil market, which will result in lower costs for storing and shipping crude oil,” said Fairway Energy CEO Chris Hilgert. “We look forward to providing agile and flexible services that enhance our customers’ market positions.”

Construction of Phase 1B, which will increase the physical storage capacity by approximately 2.6 million barrels to 10.1 million barrels and increase brine pond capacity to an equivalent capacity. That project is expected to commence in the second half of 2017, depending on customer commitments.

About Fairway Energy Partners, LLC Houston-headquartered Fairway Energy Partners, LLC, a subsidiary of Fairway Energy is a growth oriented crude oil storage business focusing on constructing and placing into service the Pierce Junction Crude Oil Storage facility. The business is strategically positioned as the only independent salt dome crude oil storage terminal in the greater Houston market area. Fairway Energy’s website is www.cvmidstream.com. For additional information on contracting for storage capacity, contact Bobby Salehi, Vice President of Corporate Development, at Bobby.Salehi@cvmidstream.com, 713.559.1529.

### Forward-Looking Statements. This press release includes “forward-looking statements.” Such statements may include, but are not limited to, statements about Fairway Energy’s future financial and operating results as well as Fairway Energy’s plans, objectives, expectations and intentions. Forward-looking statements are generally, but not always, accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “should,” “may,” “will,” plan,” “goal,” “can,” “could,” “continuing,” “ongoing,” “intend,” or other words that convey the uncertainty of future events or outcomes. While Fairway Energy’s management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Fairway Energy’s control. These and other important factors may cause Fairway Energy’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any or all of the forward-looking statements in this press release may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by Fairway Energy or any other person that the future plans, estimates or expectations contemplated by Fairway Energy will be achieved. Fairway Energy has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect the development of the proposed storage caverns, its financial condition, results of operations, business strategy and financial needs. There are important factors that could cause Fairway Energy’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-look statements including, but not limited to , adverse regional, national or international economic conditions; changes in the marketplace for Fairway Energy’s products or services, such as increased competition, better energy efficiency, or general reductions in demand; changes in the availability and cost of capital; unanticipated capital expenditures in connection with the construction, repair, or replacement of Fairway Energy’s assets; operating hazards, natural disasters, terrorism, weather-related delays, adverse weather conditions, including hurricanes and natural disasters, environmental releases, casualty losses and other matters beyond Fairway Energy’s control that interrupt Fairway Energy’s operations; and the effects of existing and future laws and governmental regulations to which Fairway Energy is subject.

For more information contact: Kelly Kimberly 832.680.5120 kkimberly@sardverb.com

July 23, 2015

Converge Midstream LLC to Construct Houston Crude Oil Storage Facility

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Converge Midstream LLC to Construct Houston Crude Oil Storage Facility

Houston, TX (July 23, 2015) – Converge Midstream LLC today announced the closing of a private equity offering, the net proceeds of which will be used to fund the construction of the first phase of the Pierce Junction Crude Oil Storage facility. Converge Midstream plans to use this capital to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out all of the requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility in commercial service. FBR Capital Markets & Co., a subsidiary of FBR & Co., served as the sole placement agent and initial purchaser in this offering, which was executed pursuant to Rule 144A under the Securities Act of 1933 and other exemptions.

The initial phase of the project is expected to be in service by the end of 2016 and has been designed to allow for storage of three segregations of crude oil for a total capacity of approximately 10 million barrels. Overall, Converge Midstream has expansion rights up to a total of approximately 20 million barrels at Pierce Junction. Following the completion of Phase I, the company intends to take the project to its full capacity during a second phase of the project. Converge Midstream has secured the exclusive right to store crude oil on the Pierce Junction Salt Dome.

Phase I also includes the construction of two separate bi-­directional 24-­inch pipelines intended to connect the facility to the existing Houston area crude oil grid, adding more than one million barrels per day of pipeline receipt and delivery capability in the Houston marketplace. The proposed pipelines will traverse approximately 21 miles across the Houston area to connect the caverns to the Genoa Junction and Speed Junction hubs. This should enable Converge Midstream to provide receipt capability from inbound crude oil pipelines from the Permian and Eagle Ford Basins, the Mid-­‐Continent and Canadian regions as well as the Gulf of Mexico. The hubs provide downstream connectivity to terminals, refineries and water outlets located in the Houston Ship Channel, Texas City and Beaumont/Port Arthur market areas.

In the first phase, Converge Midstream will also construct brine ponds with approximately 10 million barrels of capacity and central pumping and metering facilities at the site. The project is designed as a closed system, minimizing any new air emissions as well as customers’ volumetric losses.
“This project will serve the growing crude oil storage needs driven by the significant delivery of new pipeline-­‐delivered crude oil into and through the Houston market. We’re offering a new, low-­‐cost option to the market as a fee for service based provider. We do not intend to take title to the crude oil that we will handle and store, nor will we trade crude oil,” said Converge Midstream CEO Chris Hilgert. “We are delighted to have the continued support of our original financial sponsor, Haddington Ventures, LLC (Haddington), as well as the new investors in Converge Midstream who were brought to us through the engagement and efforts of FBR.”

Haddington was active in facilitating the transaction and will continue as a major investor in Converge Midstream. “We are very excited about our investment in Converge Midstream,” said Chris Jones, Managing Partner of Haddington. “Our long history with underground storage fits well with Converge Midstream’s initiative and we look forward to continuing our involvement with the company to advance this critical project into the marketplace.” This press release relates to an offering that has been closed and does not constitute an offer to sell or a solicitation of an offer to buy any securities, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Converge Midstream’s counsel for the transaction was Andrews Kurth LLP. Sidley Austin LLP represented FBR. About Converge Midstream LLC

Houston-­headquartered Converge Midstream is a growth oriented crude oil storage company focusing on constructing and placing into service the Pierce Junction Crude Oil Storage facility. The company is strategically positioned as the only independent salt dome crude oil storage terminal in the greater Houston market area. The company’s website is www.cvmidstream.com. For additional information to contract for storage capacity, please contact Kevin Hickey, Chief Commercial Officer, at .713.960.4742 or kevin.hickey@cvmidstream.com.

About FBR & Co. FBR provides investment banking, merger and acquisition advisory, institutional brokerage, and research services through its subsidiary FBR Capital Markets & Co. FBR focuses capital and financial expertise on the following industry sectors: consumer; diversified industrials; energy & natural resources; financial institutions; healthcare; insurance; real estate; and technology, media & telecom. FBR is headquartered in the Washington, D.C. metropolitan area with offices throughout the United States. For more information regarding FBR’s energy practice, please contact Allen Morton, Senior Managing Director and Energy Group Head, at 713.226-.4718 or amorton@fbr.com. About Haddington Ventures LLC Haddington, a Delaware limited liability company, is a Houston-‐based private equity firm that specializes in control-­‐oriented investments in the midstream energy and infrastructure space. Haddington currently has approximately $572 million of assets under management. Haddington is a registered investment advisor with the Securities and Exchange Commission. For further information, visit Haddington’s website at www.hvllc.com. RBC Capital Markets served as special advisor to Haddington in connection with the transaction.

Forward-­Looking Statements. This press release includes “forward-‐looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements about our future financial and operating results as well as our plans, objectives, expectations and intentions. Our forward-­‐looking statements are generally, but not always, accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “should,” “may,” “will,” plan,” “goal,” “can,” “could,” “continuing,” “ongoing,” “intend,” or other words that convey the uncertainty of future events or outcomes. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-­‐looking statements. Any or all of our forward-­‐looking statements in this press release may turn out to be inaccurate. The inclusion of this forward-­‐looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-­‐looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect the development of the proposed storage caverns, our financial condition, results of operations, business strategy and financial needs. These are important factors that could cause your actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-­‐look statements including, but not limited to , adverse regional, national or international economic conditions; changes in the marketplace for our products or services, such as increased competition, better energy efficiency, or general reductions in demand; changes in the availability and cost of capital; unanticipated capital expenditures in connection with the construction, repair, or replacement of our assets; operating hazards, natural disasters, terrorism, weather-­‐related delays, adverse weather conditions, including hurricanes and natural disasters, environmental releases, casualty losses and other matters beyond our control that interrupt our operations; and the effects of existing and future laws and governmental regulations to which we are subject.