New BP Natural Gas Opportunity Partners L.P. Closes First Portfolio Transaction
DALLAS, May 15, 2014-- BP Natural Gas Opportunity Partners, L.P. ("BP Partners"), a private equity fund sponsored by energy industry leader T. Boone Pickens, announced today it has committed up to $75 million into Mesa Natural Gas Solutions, LLC ("Mesa"). Mesa is a joint-venture between BP Partners and Moser Engine Service, Inc. ("MES") that will provide natural gas power solutions to the oil and gas industry.
BP Partners, headquartered in Dallas, Texas, makes control investments in the energy sector by partnering with experienced and proven management teams. In addition to providing financing, BP Partners contributes strategic and industry expertise in support of its portfolio companies and partners.
Mesa provides clean, reliable electric power, primarily to the oil and gas industry, by utilizing inexpensive natural gas directly from the wellhead through turnkey services contracts with its customers. The turnkey services include the delivery, installation, operation, service, and maintenance of natural gas portable power generation units. Mesa is the exclusive North American distributor of MES power generation units and will leverage BP Partners' extensive experience in the oil and gas industry to maximize the leading role of MES in providing portable natural gas power solutions. MES has more than 4 million run-hours on wellhead gas units across its fleet, which is more than any other company in North America.
The Mesa portable power unit provides operators with a solution to associated natural gas from oil wells, a resource that is at times burned off in a process called flaring. Instead of flaring natural gas, oil and gas operators can use a portable natural-gas-powered Mesa engine to generate electricity at a fraction of the cost of diesel powered generators.
"Mesa Natural Gas Solutions will leverage the industry leading products built by Moser Energy Systems and the industry experience of T. Boone Pickens and the team at BP Energy Partners to provide solutions that exceed our customer's expectations," says Jakob Norman, CEO of Mesa.
MES, a Casper, Wyoming-based, family-run company that has been serving the needs of the oil and gas industry since 1973, is a leader in engineering, manufacturing, and servicing industrial prime power natural gas generators. It began manufacturing the natural-gas-powered generators in 2009.
Mesa is the first portfolio company investment for BP Partners. BP Partners is focused on investing in companies like Mesa which can exploit the significant advantages of North American natural gas compared to other fuels. BP Partners will invest across the natural gas value chain in middle market businesses with a focus on both natural gas production and in companies who will benefit from natural gas as an inexpensive, cleaner, abundant fuel.
BP Partners is the first institutional private equity fund available to third party accredited investors launched by Pickens and the management team of BP Energy Partners LLC. BP Partners will continue the lineage of investing in private transactions that Pickens and the management team of BP Energy Partners have successfully pursued for decades.
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