FORIMMEDIATERELEASE
LucidEnergyGroupII,LLCAcquiresAgaveEnergy
DALLAS – September 1, 2016 – Midstream provider Lucid Energy Group II, LLC, (“Lucid II”) announced
todaythatsubsidiariesofthecompanyhaveclosedonthepurchaseofcertainassetsofAgaveEnergy
Company(“AgaveCo.”)andtheacquisiKonofalloftheoutstandingstockofAgaveEnergyHoldings,Inc.
(togetherwithAgaveCo.anditssubsidiaries,“Agave”).Agaveownsandoperatesnaturalgasgathering
andprocessingassetsintheDelawareBasinofsoutheasternNewMexicoandthePowderRiverBasinof
easternWyoming.
LucidIIwasformedinDecember2015bytheteamthatleadsitssuccessfulpredecessorcompany,Lucid
EnergyGroup,LLC(“LucidI”).LucidIcurrentlyoperatesalargegatheringandprocessingfootprintinthe
MidlandBasin,servingmorethan30customersacrossninecounKesinWestTexas.Asaresultofthis
transacKon,thecombinedLucidcompaniesarethelargestprivatelyheldnaturalgasprocessorworking
inthePermianBasin,with660millioncubicfeetofnaturalgasprocessingcapacityandmorethan3,300
milesofpipelineinoperaKon.LucidIandLucidIIaresupportedbyequitycapitalcommitmentsofover
$850millionintheaggregatefromEnCapFlatrockMidstream.
LucidIIGrowthPlan
Agave’s high-growth assets are located primarily in Eddy and Lea counKes in New Mexico and include
280millioncubicfeetofnaturalgasprocessingcapacity,morethan1,300milesofgasgatheringpipeline
and over 60,000 horsepower of compression. These assets are supported by dedicaKons and volume
commitments from several major producers. Lucid II plans to expand Agave’s pipeline footprint in the
DelawareBasinbyaddingnewinfrastructureinthenearterm,includinganew200MMcf/dcryogenic
processingplantatAgave’sRedHillsnaturalgasprocessingcomplexinLeaCounty.ConstrucKonofthe
newplantalreadyhasbegun,andLucidexpectstocommissionthenewplantinmid-2017.AllofAgave’s
approximately160employeeswillremainwiththecompanyatclosing.
CEOPerspecEve
“ThistransacKonfirmlyestablishesLucid’sfranchiseposiKonintheDelawareBasin,”saidMikeLatchem,
presidentandCEOofLucidIandLucidII.“ThisisacredittotheoutstandingqualityoftheenKreLucid
teamandthereputaKonwehavebuiltintheMidlandBasinforexcellenceinexecuKonandcustomer
service.WelookforwardtoworkingwiththeexisKngAgaveteamintheDelawareBasin,wherewewill
conKnuetoservesomeofthenaKon’sbestoperatorstargeKngthemostprolificreservesinthecountry.”
LegalandFinancialAdvisors
Lucid II was represented by Locke Lord LLP and Jefferies served as its financial advisor. Agave was
representedbyLatham&WatkinsLLPandButlerSnowLLP.
LucidEnergyGroup|2305CedarSprings,Suite100,Dallas,Texas75201|www.lucid-energy.com
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AboutLucidEnergyGroup,LLC(LucidI)andLucidEnergyGroupII,LLC(LucidII)
Lucid I and Lucid II are diversified energy companies that provide a full suite of midstream services to
producersworkinginthePermianBasin.BothcompaniesareledbyPresident&CEOMichaelJ.Latchem,
ExecuKveVicePresident&COOJayL.LanghamandSeniorVicePresident&CCOScohBrown.LucidIand
LucidIIaresupportedwithcapitalcommitmentsfromEnCapFlatrockMidstream.OperaKonsatLucidI
arefocusedontheMidlandBasin,whileLucidIIisfocusingitseffortsintheDelawareBasin(mapshere).
TheLucidphilosophyisgroundedinfindingcreaKvesoluKonsforitscustomers,clearcommunicaKons
andexcellenceinprojectexecuKon.Visitwww.Lucid-Energy.comformoreinformaKon.
AboutEnCapFlatrockMidstream
EnCapFlatrockMidstreamprovidesvalue-addedgrowthcapitaltoprovenmanagementteamsfocused
on midstream infrastructure opportuniKes across North America. The firm was formed in 2008 by a
partnership between EnCap Investments L.P. and Flatrock Energy Advisors. Based in San Antonio with
officesinOklahomaCityandHouston,EnCapFlatrockisledbyManagingPartnersandFoundersWilliam
D.Waldrip,DennisF.JaggiandWilliamR.Lemmons,Jr.Thefirmmanagesinvestmentcommitmentsof
nearly $6 billion from a broad group of insKtuKonal investors. EnCap Flatrock is currently making
commitmentstonewmanagementteamsfromEFMFundIII,a$3billionfund.www.efmidstream.com
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MediaContact:
CaseyNikoloric
TEN|10Group
303.433.4397,x101o
303.507.0510m
[email protected]
LucidEnergyGroup|2305CedarSprings,Suite100,Dallas,Texas75201|www.lucid-energy.com
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