US midstream services start-up secures $400m from EnCap Flatrock Midstream

US-based crude oil logistics start-up Lotus Midstream has secured an initial capital commitment of $400m from EnCap Flatrock Midstream (EFM).

The funding also includes contribution from the Lotus management team.

The company intends to develop midstream infrastructure and services required to carry crude oil and condensate from the wellhead to market, including crude gathering, transportation and storage.

Lotus Midstream CEO Mike Prince said: “We look forward to building Lotus Midstream with a focus on high growth areas in the Permian Basin and the Midcontinent, where we see multiple opportunities and have an established track record, a thorough knowledge base and strong relationships.”

The company is currently planning to acquire strategic assets.

Apart from Prince, the company’s management team includes chief commercial officer Emily Baker and chief operating officer Jen Fontenot.

Lotus intends to leverage the experience of its management team in the energy industry.

The management members were previously employed with the business development team at Sunoco Logistics Partners.

EnCap Flatrock Midstream managing partner Greg King is a member of the Lotus board of directors.

King said: “Mike, Emily and Jen are recognised leaders in crude oil logistics with outstanding reputations in the producer community and impressive commercial and operational skills.

“They understand that midstream success begins with upstream success and have a long-term plan that is focused on creating value for their customers. We look forward to supporting the company as it pursues its strategy.”

Companies in EnCap’s portfolio include Aspen Midstream, Lucid Energy Group, Rangeland Energy III and Caiman Energy II.