New Midstream Company Formed
Palmilla Energy LLC, a Houston-based company, has announced its formation to manage and develop midstream assets. Palmilla is backed by funds managed by Oaktree Capital Management, L.P.
Palmilla provides a full suite of midstream and marketing services to oil and gas producers throughout the United States and is led by seasoned energy executive Rich DiMichele, who formerly ran the midstream efforts for both Petrohawk Energy and Halcón Resources. While at Petrohawk Energy and Halcón Resources, DiMichele oversaw the development and ultimate sale of over $2 billion of midstream assets. Other Palmilla executives include Travis Boeker as EVP- Commercial and Business Development, Scott Grahmann as EVP-Accounting, Finance and Administration and David Wright as EVP-Operations and Construction. The combined management team has over 60 years of energy-related experience and has been involved in the development, acquisition, operations, turnarounds and divestitures of numerous energy assets and companies.
“I’m excited about the prospects we’re seeing in our industry right now. Alongside Oaktree’s expertise, we’ve put together a team at Palmilla that can capitalize on the opportunities the energy cycle currently presents,” said DiMichele. “The key is to execute win-win deals for us and our customers. One of the things that differentiates us is that we’ve proven we can create tremendous value for stakeholders on both sides of the table.”
Initially, Palmilla will manage the Wildcat Caddo system owned by Highstar IV, a fund managed by Oaktree, in northwest Louisiana.
“Producers in northwest Louisiana seem to be increasing their activity, and we think that a recently constructed cryogenic processing plant and gathering system, in the core of the Cotton Valley can add tremendous value to those producers,” said Boeker. “Having an unlevered asset with a strong financial partner in Oaktree creates the flexibility to enter into successful deals that work both right now and when gas and NGL prices recover. We’re very excited about the prospects for Wildcat Caddo.”
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