Denham Capital invests $200M in Tradition to target midstream infrastructure need

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July 27, 2011

Denham Capital has provided a $200 million private equity commitment to Tradition Midstream LLC to help address the need for new and expanded midstream energy infrastructure related to the continued growth of natural gas, natural gas liquids, and crude oil production from unconventional resources development in the US.

“There is a tremendous opportunity for an established midstream management group to assist producers and consumers in developing, constructing and operating infrastructure in emerging shale plays across the US,” said John O’Shea, CEO of Tradition. “Tradition’s team has an excellent track record of providing value-added solutions for our customers by serving as an extension of their company and providing timely, low cost and reliable gathering, processing and transportation services which will help bring natural gas, natural gas liquids and crude oil to market.

Tradition’s management team of O’Shea, Don Brown, president, James Lee, CFO, Bryan Johnson, COO, and Mark Edge, VP, Land & ROW, has more than 100 years of combined experience in the midstream sector. Its principals first worked together in the 1990s at Natural Gas Clearinghouse/Dynegy before building Millennium Midstream Partners. Millennium was founded in 2002, and in 2008 was purchased by Eagle Rock Energy Partners.

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