Group commits more than $300 million to form new Tulsa energy company, Intensity Midstream LLC
Two veterans of Hiland Partners are reunited to form a new Tulsa-based oil and gas pipeline, storage and processing firm.
Joseph Griffin and Derek Gipson are founding Intensity Midstream LLC. The plan is to build or acquire and develop energy transportation, terminal and treatment assets connected to North America basins.
The new company is stepping in the midst of an industry-wide downturn, with oil prices falling 50 percent over the past year. Griffin said Intensity was launched with the knowledge that some companies may be willing to sell assets in the near future.
“Our rationale for getting going right now is to position Intensity for opportunities that may materialize over the next six to nine months with regards to potential divestitures in the midstream space,” he said in an emailed response to questions from the Tulsa World.
“Also, to the extent prices rebound in the medium to long term, and drilling programs respond accordingly, we want to be ready to provide producers with responsive and creative midstream solutions, much like we did at Hiland,” Griffin added.
Intensity is forming with more than $300 million in financial commitments from its founders and private equity firm Quantum Energy Partners. Quantum has made more than $10.5 billion in equity commitments to various global energy firms over the years.
“We are thrilled to be partnering with such an entrepreneurial team and look forward to building a substantial midstream platform alongside Joe and Derek,” Bill Montgomery, Quantum’s managing director, said in the statement.
Griffin will be president and chief executive officer of the Tulsa startup, while Gipson will be executive vice president and chief financial officer at Intensity Midstream.
Together the two helped guide Enid-based Hiland Partners, which was owned by Continental Resources CEO and founder Harold Hamm, through its $3 billion acquisition by Kinder Morgan earlier this year. Hiland Partners was focused on building its pipeline network in the prolific Bakken Shale oil play of North Dakota.
Quantum also has been instrumental in deals this year with LINN Energy and Rio Oil and Gas II.
Griffin and Gipson Timeline
1989: Joseph Griffin founds Lumen Midstream
2002: Gipson graduates from Notre Dame
2003: Gipson joins A.G. Edwards
2004: Griffin sells Lumen Midstream to Southern Ute tribe, staying on to run Lumen until 2007
2007: Hiland Partners names Griffin as CEO, president and director
2007: Gipson joins Wachoia through its acquisition of A.G. Edwards
2010: Hiland Partners hires Gipson as investor relations and business development director
2011: Gipson promoted to executive vice president at Hiland
February 2015: Kinder Morgan acquires Hiland for $3 billion
June: Griffin, Gipson and Quantum Energy Partners join forces to form Tulsa-based Intensity Midstream LLC
Rod Walton 918-581-8457
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