CSV Midstream Solutions Corporation (“CSV Midstream” or the “Company”) has entered into a strategic partnership with funds affiliated with Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”), to pursue the construction and operation of midstream facilities in the Western Canadian Sedimentary Basin. Funds managed by Apollo have provided CSV Midstream with an equity commitment of $500 million to fund the Company’s business plan.
CSV Midstream is well positioned to capitalize on the compelling growth opportunities in the natural gas and natural gas liquids (“NGL”) industry. They offer practical, sustainable midstream solutions to help producers deal with increasingly restrictive processing capacities. Led by a proven, experienced management team, CSV Midstream’s primary focus is upstream development—the engineering, design, construction, operation and management of assets, including sweet and sour gas processing, liquids handling and fractionation, and gas gathering and transmission pipelines—but with a passion to advance strategic energy solutions.
“We’re very fortunate to have the backing of Apollo, with access to their deep experience in natural resources,” states Daniel Clarke, founder and CEO of CSV Midstream. “Our vision is to not only deliver exceptional expertise within the natural gas infrastructure sector, but also to work closely with all involved—industry and community—to create shared value up and down the line.”
CSV Midstream will utilize innovative business models, such as guaranteed cost assurance and shared risk, to help producers manage growth and sustainability. Mr. Clarke explains, “We believe our shared-risk model, with capital risk sharing and fee assurances, will provide our customers with reliable expenditure budgets and schedules. In addition, we feel that including internal and external stakeholders in the scope of operations is essential for today’s energy and environmental awareness. We want to grow operations through best practices for all stakeholders.”Rakesh Wilson, a Partner of Apollo, comments, “This strategic partnership with CSV Midstream is a great example of Apollo’s approach to partnering with proven management teams and providing the needed capital and other resources to help launch profitable new businesses in attractive markets. Over the years, the CSV Midstream team has developed valuable relationships and has built a solid track record of project development in the Canadian midstream sector.”