Permico Midstream Partners Has Been Acquired by Permico Founders

HOUSTON, May 5, 2022 – GulfStar Group (“GulfStar”) is pleased to announce the sale of the assets of Permico Midstream Partners, LLC (“Permico Midstream” or the “Company”) to Permico Founders, LLC (“Permico Founders”), through a process administered under Chapter 11 of the United States Bankruptcy Code. Permico Founders acquired the Company’s assets after protracted legal and commercial negotiations that occurred amidst the economic downturn and severe oil and gas market dislocation in 2020. GulfStar served as the exclusive financial advisor to Permico Midstream throughout the transaction, which closed on March 3, 2022.

Permico Midstream is a development-stage midstream oil and gas company based in Houston, Texas. The Company is focused upon developing, constructing, and operating assets to transport and process natural gas liquids in Texas, as well as the domestic and international marketing of the end products. Capital constraints and market uncertainty led to the Company seeking Chapter 11 bankruptcy court protection in the Southern District of Texas in May of 2020, while management continued its development efforts and contract negotiations with suppliers and offtake partners. The Bankruptcy Court appointed former bankruptcy judge, William Greendyke, currently of counsel at Norton Rose Fulbright US, LLP, as Chapter 11 trustee to oversee and negotiate on behalf of the Company during the case administration period. Mr. Greendyke retained GulfStar to serve as financial advisor to his office and represent Permico Midstream in evaluating strategic alternatives for maximizing creditor recovery, eventually resulting in the sale of Company assets following multiple restructuring attempts. After a broad marketing process, the sale was ultimately closed with Permico Founders.

“The GulfStar team was incredibly diligent, professional, and hard-working all throughout this very difficult case,” said William Greendyke, Chapter 11 trustee, Permico Midstream. “Their constant attention to detail and careful and kind approach to the situation and all parties in interest were instrumental in getting this case to a successful conclusion. I would highly recommend them and look forward to working with them again.”

“GulfStar greatly appreciates the work of all parties, including constructive contributions from multiple creditors and rational and patient behavior from all involved. This collaborative approach was conducive to the successful closing of this sale transaction and will enable development of this major project to continue,” said Bryan Frederickson, managing director of GulfStar. “This result was achieved through complex and protracted negotiation and compromise that required good faith efforts all around.”

The GulfStar team was led by Managing Director Bryan Frederickson with support from Senior Vice President Charles Craig, Associate Andrew Winters and Analyst Luis Barrera.

Trustee William Greendyke was supported by a legal team consisting of Partners Jason Boland and Bob Bruner and Associates Julie Harrison and Maria Mokrzycka of Norton Rose Fulbright US, LLP.

About GulfStar Group
GulfStar is a leading middle market investment bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed approximately 750 transactions in 36 states and 16 foreign countries across a variety of industries.