Stonepeak Infrastructure Partners to Acquire Oryx Midstream

Affiliates of Quantum Energy Partners, Post Oak Energy Capital, Concho
Resources (NYSE:CXO), WPX Energy (NYSE:WPX) and other investors
announced today that they have entered into a binding agreement to sell
substantially all of the assets of Oryx Southern Delaware Holdings LLC
and Oryx Delaware Holdings LLC (collectively, “Oryx”) to funds managed
by Stonepeak Infrastructure Partners (“Stonepeak”) for a cash purchase
price of approximately $3.6 billion. For Stonepeak, Oryx represents an
ideal platform for providing critical crude oil transportation services
in the Permian Basin that is well-positioned to capitalize on growing
production, given its differentiated service offering, expansive
geographic footprint, scalable in-place infrastructure, and unique
customer diversification. Oryx will retain its name and continue to be
headquartered in Midland, Texas. Its leadership team, led by Brett Wiggs
and Karl Pfluger, will remain in their current roles and are investing
alongside Stonepeak in this transaction.

Oryx is the largest privately-held midstream crude operator in the
Permian Basin. The company owns and operates a crude oil gathering and
transportation system underpinned by nearly one million acres under
long-term dedications from more than 20 customers, including many of the
Permian’s leading oil and gas producers. The system’s 2.1 million
barrels of storage and approximately 1,200 miles of in-service and
under-construction pipeline span eight counties in Texas and two in New
Mexico, representing a footprint across the core of the Delaware Basin
that features the most economic and long-lived drilling resource in the
United States. Upon completion of the remaining part of the system under
construction, Oryx’s total Delaware Basin transportation capacity will
ultimately exceed 900,000 barrels per day and access multiple takeaway
options, providing customers the differentiated service flexibility they
need to maximize the value of their production.

Brett Wiggs, CEO of Oryx, commented, “We are grateful for our productive
five-year relationship with Quantum and Post Oak, whose knowledge and
industry expertise were strong factors in our growth and success
to-date. As we begin our next chapter and new partnership with
Stonepeak, we look forward to the operational and capital support they
will provide our team as we continue to aggressively grow our footprint
in the Permian Basin. Most importantly, we are fortunate to have the
opportunity to lead Oryx as we enter this next growth stage, maintaining
strong relationships with our customers, and continuing to provide the
highest level of service.”

Dheeraj Verma and Garry Tanner, Partners at Quantum Energy Partners,
commented, “We would like to thank all of our partners who helped build
Oryx into the premier privately-owned midstream system in the Permian
basin. Partnering with exceptional entrepreneurs like the Oryx
management team has been the hallmark of our success over the years.
Additionally, this business is a great example of how our combined
upstream and midstream expertise can translate into significant value
creation for our portfolio companies and limited partners over time. We
are also grateful for our cornerstone industry partners, Concho and WPX,
who were a key component of Oryx’s success.”

“The development, buildout and ultimate commercialization of the Oryx
crude oil gathering and transportation system in the preeminent oil
basin in North America has resulted in exceptional value creation for
customers and owners,” remarked Frost Cochran, Managing Director of Post
Oak Energy Capital. “We have great respect for the foresight and
execution capabilities of Oryx’s management team, our producer partners,
capital partners and Midland based partners that led to the formation of
this extraordinary infrastructure asset.”

Jack Howell, Partner and head of Stonepeak's energy business, commented,
“Stonepeak is delighted to partner with the Oryx management team to
build upon the impressive franchise they have established, and our
extensive experience in the Permian uniquely qualifies us to help
transition Oryx into the next phase of its evolution. Oryx is the most
attractive private Permian midstream asset Stonepeak has evaluated and
we view it as a strategic platform and a core North American crude
infrastructure asset. Our critical focus will be on continuing to
provide Oryx’s diversified customer base with best in class service
offerings to accommodate their growing production while also pursuing
new commercial opportunities across the value-chain.”

Advisors

Barclays, acting through its investment bank, advised Stonepeak
Infrastructure Partners on the transaction. A Barclays-led arranger
group including Goldman Sachs, RBC Capital Markets, and Jefferies LLC
have provided a $1.5 billion Term Loan B in support of the transaction,
which will include a refinancing of the existing Oryx Southern Delaware
Holdings, LLC facility and consolidation of Oryx Southern Delaware
Holdings LLC and Oryx Delaware Holdings LLC (collectively, “Oryx”) into
a single Borrower.

Jefferies LLC and Citi acted as financial advisors to Oryx and its
sellers.

Shearman and Sterling LLP and Vinson & Elkins LLP served as legal
counsel to Oryx. Stonepeak was represented by Hunton Andrews Kurth LLP
and Sidley Austin LLP with regards to the transaction, and Simpson
Thatcher & Bartlett LLP, its fund counsel. Latham & Watkins, LLP
represented the lender group.

About Stonepeak Infrastructure Partners

Stonepeak Infrastructure Partners (www.stonepeakpartners.com)
is an infrastructure-focused private equity firm with over $15 billion
of assets under management and with offices in Houston, New York, and
Austin. Stonepeak invests in long-lived, hard-asset businesses and
projects that provide essential services to customers, and seeks to
actively partner with high-quality management teams, facilitate
operational improvements, and provide capital for growth initiatives.

About Quantum Energy Partners

Founded in 1998, Quantum Energy Partners is a leading provider of
private equity capital to the global energy industry, having managed
together with its affiliates more than $16 billion in equity commitments
since inception. Quantum invests across the energy value chain with an
emphasis on North American upstream, midstream, oilfield services,
energy technology and renewables sectors. For more information on
Quantum, please visit www.quantumep.com.

About Post Oak Energy Capital

Post Oak, which was established in 2006, is an energy-focused private
investor based in Houston, Texas. Its management team has executive
management experience and a broad network in the energy business as well
as significant expertise in equity investments, operations, development,
finance, acquisitions and divestitures. The firm pursues private
investments primarily in the upstream sector of the oil and gas industry
in North America and, to a lesser extent, in oilfield service and
related infrastructure. Post Oak works in close partnership with
operating management teams to build businesses, accelerate growth and
enhance shareholder value. www.postoakenergy.com.

About Oryx Midstream Services

Midland-based Oryx Midstream is the largest privately-held midstream
crude operator in the Permian Basin. The company owns and operates a
crude oil gathering and transportation system underpinned by nearly one
million acres under long-term dedications from more than 20 customers.
The system’s 2.1 million barrels of storage and approximately 1,200
miles of in-service and under-construction pipeline span eight counties
in Texas and two in New Mexico. Led by an experienced team with more
than 160 years of experience in the oil and gas industry, Oryx is
dedicated to providing producers with solutions and flexibility through
a full suite of midstream services. For more information, please visit www.oryxmidstream.com.

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