#United States #New York #Lane42 #Aqua Terra #Karis Midstream

Lane42 Investment Partners Acquires Aqua Terra Permian

In a strategic move to bolster its midstream infrastructure investments, Lane42 Investment Partners, LLC ("Lane42") recently announced the acquisition of Aqua Terra Permian, LLC ("Aqua Terra Permian"), a significant player in energy infrastructure services. This acquisition, in collaboration with Karis Midstream Partners, signals a robust commitment to enhancing midstream operations within the booming Permian Basin, well-known for its rich energy resources.

Background of Aqua Terra Permian

Aqua Terra Permian has established itself as a vital entity, catering to exploration and production companies. The firm operates an extensive network of gathering pipelines, as well as transportation and saltwater disposal wells, essential for the operational efficiency of its clients. With a reputation built on strong technical know-how and solid customer relationships, the company enjoys long-term contracts with investment-grade counterparties.

Strategic Growth and Management Team

The acquisition is set to be led by a robust management team from Karis, with Odely Sakazi stepping into the role of CEO and David Melton as COO. Their leadership intends to drive the growth of Aqua Terra Permian, focusing on the seamless delivery of water-focused midstream services to their extensive client base. According to David Bernfeld, a partner at Lane42, this transaction enhances Aqua Terra's financial stability and equips the company with the necessary capital for future growth initiatives, ensuring the provision of top-tier services to its customers.

Odely Sakazi expressed confidence in this partnership, stating, "In Lane42, David Melton and I have found a partner that aligns with our vision for a scaled-up, water-centric midstream operation. We are eager to innovate alongside our customers and continue delivering the exemplary service standards they expect from Aqua Terra Permian."

The Role of Advisors

Critical to the transaction's success, Vinson & Elkins provided legal counsel, while Houlihan Lokey acted as Lane42's exclusive financial advisor. On the other hand, Stephens Inc. played a similar advisory role for Karis Midstream Partners, ensuring that both firms could navigate the complexities of the acquisition smoothly while adhering to regulatory standards.

Lane42's Background

Established by investment veteran Scott L. Graves, Lane42 serves as an alternative asset management firm. It specializes in identifying valuable opportunities arising from inefficiencies across both public and private markets, all while facilitating a collaborative approach that emphasizes integrity and alignment with partners. With a headquarters in both Santa Monica and New York, Lane42 aims to redefine the investment landscape by providing exceptional value to its investors and robust partnership to its portfolio companies.

Future Outlook

As Aqua Terra Permian embarks on this new chapter fueled by the support from Lane42 and Karis Midstream, the company is well-positioned to capitalize on the growing demands of the energy industry. With a strategically focused vision of evolving to become an industry leader in water midstream services, the acquisition not only strengthens its market standing but also reinforces its ability to deliver essential services essential for sustainable growth. The future seems promising for Aqua Terra Permian as it looks to expand its capabilities and enhance service delivery in the thriving Permian Basin and beyond.

Conclusion

The acquisition of Aqua Terra Permian by Lane42 Investment Partners illustrates a significant shift in the midstream sector’s landscape, highlighting a trend towards consolidation and enhanced service delivery. By focusing on infrastructure growth and maintaining high operational standards, this acquisition sets the stage for substantial advancements in midstream services in the energy sector, benefiting both operators and customers alike as they navigate the challenging market conditions of the future.