Former Falcon Founding Management Forms
Peregrine Midstream Partners
Houston, TX, February 4, 2009 - Four members of Falcon Gas Storage Company's original founding management group have formed a new company called Peregrine Midstream Partners LLC.
John M. Hopper, Jeffrey H. Foutch, Keith Chandler and Thomas B. Wynne, all part of Falcon's founding management team, have formed the new Peregrine venture to pursue development and acquisition opportunities in the midstream energy sector, including natural gas storage, transportation and processing; natural gas liquids (NGL) extraction; and crude oil and NGL storage and handling.
In addition to building NorTex, Falcon's wholly-owned subsidiary, into the largest independent gas storage company in north Texas, the founding management group was responsible for the initial development of the MoBay Storage Hub, which is slated to be the largest gas storage project ever developed in the Southeastern United States with 50 Bcf of high-deliverability, multi-cycle (HDMC) gas storage capacity, as well as the Greyhawk-Wyckoff HDMC gas storage project in New York, a 6 Bcf facility now under construction by units of SemGroup and George Kaiser Interests.
"There are tremendous opportunities in the midstream energy space right now", said John M. Hopper, one of Peregrine's four managing directors, on behalf of the new company's founders. "While others pull in their horns and just try to keep their heads above water, opportunities abound for a well-capitalized company with a seasoned management team. It's the perfect time to be a contrarian and move forward."
Starting Falcon over eight years ago with a $5 million initial capital infusion at a time when virtually no one was developing gas storage projects, the founders put together a team that successfully developed two HDMC gas storage projects in north Texas with 35 Bcf of working gas storage capacity, over 1 Bcfd of injection and withdrawal capability, 140,000 Mcfd of gas processing capacity, 900,000 Mcfd of gas transportation capacity, and over 4,000 barrels per day of crude oil and natural gas liquids production.
"From a standing start we built a significant midstream presence in the Barnett Shale around the NorTex storage facilities with gas processing, pipelines, crude oil and natural gas liquids production, then launched a fourth gas storage project, MoBay, that will be larger than the first three combined," Hopper added. "We left Falcon with a balance sheet footing exceeding $540 million and positioned as the largest independent gas storage company in north Texas, as well as one of the largest privately-owned midstream companies in the entire country. It should be great fun and a tremendous opportunity replicating that success with Peregrine in other strategic locations throughout the United States and perhaps internationally as well."
About Peregrine Midstream Partners LLC
Headquartered in Houston, Peregrine Midstream Partners is a privately-held company pursuing development and acquisition opportunities in the midstream energy sector in addition to providing midstream asset management and advisory services. Peregrine's midstream business model is focused on natural gas storage, transportation and processing; NGL extraction; crude oil and NGL production, storage, handling, marketing and sales in association with HDMC natural gas storage development and operations; and energy commodity risk management.
For more information, please contact: John M. Hopper Jeffrey H. Foutch 713.974.5600 jhopper@peregrinempllc.com jhfoutch@peregrinempllc.com
Carole Minor Encore Communications 713.880.9550 cminor@encorecommunications.com