Nuevo Midstream Dos, LLC Agrees to Purchase Republic Midstream, LLC

Nuevo
Midstream Dos, LLC (“Nuevo Dos”) announced today it has entered into
a definitive agreement with an affiliate of ArcLight Capital Partners
(“ArcLight”) to purchase Republic
Midstream, LLC (“Republic Midstream”). Republic Midstream owns and
operates a crude oil gathering, storage and intermediate transportation
system in the Eagle Ford Shale. The transaction is expected to close
early in the second quarter of 2019. Nuevo Dos is backed by EnCap
Flatrock Midstream.

Nuevo Dos plans to expand the system, which currently consists of
approximately 100 miles of gathering pipeline that feeds a central
delivery point (“CDP”) with 300,000 barrels of crude oil storage and a
six-bay truck station. The system also includes an approximately 26-mile
intermediate pipeline that moves volumes from the CDP to the Kinder
Morgan Crude and Condensate Pipeline (“KMCC”) and the Eagle Ford Crude
Oil Pipeline System, which is owned and operated by Enterprise. The
Kinder Morgan and Enterprise pipelines deliver crude and condensate to
multiple terminals with access to refineries, petrochemical plants and
export terminals on the Texas Gulf Coast.

From Nuevo Midstream Dos
“We are very excited about this
acquisition and the opportunity to expand the footprint and service
offerings of the Republic system. We really like these assets and their
location within the Eagle Ford,” said Nuevo Dos President & CEO Randy
Ziebarth. “The Eagle Ford is experiencing a resurgence and is advantaged
by its proximity to the Gulf. Nuevo Dos looks forward to helping
producers fully participate in moving crude and condensate to market.”

From EnCap Flatrock Midstream
“We have been partnering with
the Nuevo team since 2011,” said EnCap Flatrock Vice President Zach
Kayem, a member of the Nuevo Dos board of directors. “This is a team
with a very successful track record of acquiring a system and developing
its potential, as it did in the Permian. We’re looking forward to
assisting the Nuevo Dos team with the acquisition and expansion of
Republic’s Eagle Ford system.”

Advisers
Locke Lord LLP is advising Nuevo Dos, with partner
Bill Swanstrom and associate Jenelle Simmons in the lead roles from the
firm’s Houston office. Mr. Swanstrom is co-chair of the firm’s energy
practice group. Latham & Watkins, LLP is providing legal counsel to
Republic Midstream in conjunction with the transaction, while Jefferies
LLC served as exclusive financial adviser to ArcLight on the transaction.

About Nuevo Midstream Dos, LLC
Nuevo Dos provides a full
complement of midstream solutions to producers and marketers of crude
oil, condensate, natural gas and NGLs. The company is based in Houston
and led by the core management team that formed Nuevo Midstream, LLC in
2011. The Nuevo team built a significant midstream footprint in the
Delaware Basin of West Texas and Southeast New Mexico, which ultimately
was sold to Western Gas in 2014. The Nuevo Dos team has a successful
track record in strategic midstream design, large project development,
operations, product marketing and energy finance, as well as a deep
working knowledge of the challenges and opportunities that producers
face in shale plays across North America. For more information, please
visit www.nuevomidstream.com.

About EnCap Flatrock Midstream
EnCap Flatrock Midstream
provides value-added growth capital to proven management teams focused
on midstream infrastructure opportunities across North America. The firm
was formed in 2008 by a partnership between EnCap Investments L.P. and
Flatrock Energy Advisors, LLC. Based in San Antonio with offices in
Oklahoma City and Houston, the firm manages investment commitments of
nearly $9 billion from a broad group of prestigious institutional
investors. EnCap Flatrock Midstream is currently making commitments to
new management teams from EFM Fund IV, a $3.25 billion fund. For more
information please visit www.efmidstream.com.

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