Rangeland Energy, Sugar Land, Tex., has received a $300 million equity commitment from EnCap Flatrock Midstream and formed Rangeland Energy III LLC “to pursue new midstream opportunities in resource plays across North America.”
An existing entity, Rangeland Energy II LLC, will continue to focus on construction, operation, and expansion of its RIO System, which includes a rail-and-truck hub near Loving, NM, providing transportation of crude oil and condensate produced in the Delaware basin as well as inbound frac sand. The hub was fully commissioned last month.
A related crude oil system, including a gathering hub near Mentone, Tex., and an 85,000-b/d pipeline between there and Midland, is under construction.
EnCap Flatrock Midstream and Rangeland founders provided equity financing for Rangeland Energy II and for the first Rangeland entity, which developed a system of crude oil pipelines and terminals in the Bakken play. Inergy Midstream LP, now Crestwood Midstream Partners LP, bought that company in 2012 (OGJ Online, Oct. 10, 2013).