“This transaction is a very important milestone for our team,” said Greg Sargent, founder and CEO of Pinnacle. “Over the past three years, we have worked hard to create significant value by developing, constructing and bringing into operation a full-service midstream solution in Culberson and Reeves Counties. This asset will serve some of the best producers in the basin and we look forward to working with I Squared Capital to expand the system.”
Michael Watzky, Managing Partner at BPEP, said, “We are proud of the success that Greg Sargent and his team achieved at Pinnacle. Pinnacle and BPEP have built a strategic asset in one of the most active basins in North America.”
Commenting on the transaction, Adil Rahmathulla, Partner at I Squared Capital noted, “We are excited to work with the Pinnacle team to bring I Squared Capital’s operating expertise and capital to the company as it expands its footprint and service offerings to provide additional downstream optionality for producers in the region.”
Pinnacle’s current management team will continue to run the company as it pursues its growth strategy. The transaction is expected to close following customary regulatory approvals.
