Tall Oak Midstream Closes Two Credit Facilities Totaling $100 Million

August 2, 2018
Tall Oak Midstream

OKLAHOMA CITY – August 2, 2018 – Tall Oak Midstream, LLC (“Tall Oak”) today announced that its subsidiaries, Tall Oak Midcon, LLC and Tall Oak Woodford, LLC, each have closed a $50 million credit facility with accordion features that allow for expansions to $75 million. Formed in 2014, Tall Oak is an independent midstream company focused on providing midstream services to oil and gas producers operating in the Mid-Continent. The two credit facilities, coupled with equity commitments from EnCap Flatrock Midstream and Tall Oak’s founders, bring total financing capacity for Tall Oak Midstream companies to $700 million.

Two Oklahoma banks participated equally in both credit facilities, with BancFirst acting as administrative agent/joint lead arranger and Bank SNB, a division of Simmons Bank, also serving as joint lead arranger. The two-year facilities mature in July 2020.

The new credit facilities will help fund the ongoing development and expansion of Tall Oak’s Midcon and Arkoma STACK natural gas gathering and processing systems, which serve producers working in Oklahoma’s STACK play. 

“This additional financing gives us an enhanced ability to serve our producer customers and meet the growing demand for additional capacity across the region,” said Tall Oak CFO Max Myers. “The energy industry is a significant growth engine in Oklahoma. We are particularly pleased to have the participation and support of these two outstanding Oklahoma banks, allowing us to conduct this business here at home and continue to contribute to the state’s economic growth.”

“BancFirst is very pleased to serve as agent and joint lead arranger of the Tall Oak Midcon and Tall Oak Woodford credit facilities,” said Tanner Eckler, senior vice president at BancFirst. “Tall Oak Midstream has a top caliber management team that has emerged as a leader in developing midstream assets in the Mid-Continent. It is a pleasure to partner with a strong homegrown company that is providing true economic growth for the state of Oklahoma.”

“The Tall Oak team is top tier within the midstream industry in our view,” said Charlie Crouse, managing director, Energy Division for Bank SNB. “Simmons Bank is excited about the opportunity to be a strategic financial partner for this team along with BancFirst and Encap Flatrock Midstream.” 

Crooks, Stanford and Shoop provided Oklahoma legal counsel to Tall Oak. Crowe & Dunlevy represented BancFirst and Bank SNB. Both firms are based in Oklahoma.

About Tall Oak Midstream, LLC
Based in Oklahoma City, the Tall Oak companies are dedicated to bringing a fresh perspective to serving oil and gas producers with a full suite of midstream services. Core capabilities include natural gas gathering, compression, treating and processing; crude oil gathering and transportation; condensate and water handling; and product marketing solutions. Please visit www.talloakmidstream.com for more information.

About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion from a broad group of prestigious institutional investors. EnCap Flatrock Midstream is currently making commitments to new management teams from EFM Fund IV, a $3.25 billion fund. For more information please visit www.efmidstream.com.

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