Joint Venture • Oil/Gas Exploration

Tenaska Capital Management and Energy Spectrum Capital Acquire Frontier Gas Services

On August 18, 2009, private equity firms Tenaska Capital Management and Energy Spectrum Capital acquired oil/gas exploration company Frontier Gas Services for 250M USD

Acquisition Context
  • This is Tenaska Capital Management’s 5th and Energy Spectrum Capital’s 4th transaction in the Oil/Gas Exploration sector.
  • This is Tenaska Capital Management’s 3rd and Energy Spectrum Capital’s 2nd largest (disclosed) transaction.
  • This is Tenaska Capital Management’s 19th and Energy Spectrum Capital’s 32nd transaction in the United States.
  • This is Tenaska Capital Management’s 2nd and Energy Spectrum Capital’s 9th transaction in Oklahoma.

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M&A Deal Summary

Date August 18, 2009
Target Frontier Gas Services
Sector Oil/Gas Exploration
Buyer(s) Tenaska Capital Management
Energy Spectrum Capital
Deal Type Joint Venture
Deal Value 250M USD

Target Company

Frontier Gas Services

Tulsa, Oklahoma, United States
Frontier Gas Services, LLC is a joint venture that was formed by TCM and Energy Spectrum Partners V, LP to back Frontier Energy Services, LLC, an experienced and successful midstream manager and operator, for the acquisition and development of gathering, treating and compression assets in Arkansas and Texas.
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Buyers Overview 2

Buyer

Tenaska Capital Management

Omaha, Nebraska, United States

Category Private Equity Firm
Founded 2003
PE ASSETS 3.2B USD
Size Large
Type Sector Focused
DESCRIPTION

Tenaska Capital Management (TCM) is the private equity affiliate of integrated energy company Tenaska. TCM was formed to leverage Tenaska's sector expertise to pursue opportunities for investment in the North American energy sector. Specific areas of interest include power generating plants; national providers of transmission and pipeline construction and maintenance services; and natural gas storage facilities. Tenaska Capital Management is based in Omaha, Nebraska.


Deal Context for Buyer #
Overall 19 of 22
Sector: Oil/Gas Exploration 5 of 6
Type: Joint Venture 1 of 2
State: Oklahoma 2 of 2
Country: United States 19 of 22
Year: 2009 1 of 1
Size (of disclosed) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-12-17 Commonwealth Chesapeake Co

New Church, Virginia, United States

Commonwealth Chesapeake Co LLC is a simple-cycle plant provides electric generating capacity to the PJM Interconnection market during periods of peak demand.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-01-01 East Texas Gathering

Dallas, Texas, United States

East Texas Gathering LLC is an approximately 225-mile natural gas gathering system with an operating capacity of approximately 1.2 Bcf/day that was developed and constructed to serve the Haynesville, Bossier and James Lime shale formations in eastern Texas and western Louisiana.

Buy -
Buyer

Energy Spectrum Capital

Dallas, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 4.5B USD
Size Large
Type Sector Focused
DESCRIPTION

Energy Spectrum Capital is a midstream private equity firm specializing in investment in buyouts and buys and build in middle-market companies. The Firm focused exclusively on the energy industry. ESC looks to make a direct investment in established companies includes oil & gas gathering and transportation systems, processing and treating facilities, storage facilities and other infrastructure facilities. ESC targets growing businesses and seeks to partner with experienced managements teams. The Firm looks to invest $50- $200 million per transaction. Energy Spectrum Capital was formed in 1995 and is based in Dallas, Texas.


Deal Context for Buyer #
Overall 34 of 62
Sector: Oil/Gas Exploration 4 of 21
Type: Joint Venture 1 of 3
State: Oklahoma 9 of 17
Country: United States 32 of 59
Year: 2009 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-11-01 Velocity Midstream Partners

Tulsa, Oklahoma, United States

Velocity Midstream Partners, LLC is an experienced and well capitalized midstream company focused on engineering, acquiring, owning and operating efficient and cost effective gas gathering and transportation pipelines, compression, treating and processing assets in Texas, Louisiana, and Oklahoma.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-12-01 Forrest Drilling Co.

Oklahoma City,, Oklahoma, United States

In March 2006, ESC partnered with Gungoll Exploration of Oklahoma City to form Forrest. The Company ultimately operated seven rigs ranging from 1,200 – 1,500 horsepower. A subsidiary of Chesapeake Energy purchased Forrest in December 2010.

Sell -