Lucid Energy Group Agrees to Sell Delaware Basin Subsidiary to Riverstone Holdings and Goldman Sachs Merchant Banking Division


Fried Frank acted as counsel to Goldman Sachs' Merchant Banking Division (MBD) in its agreement to invest across West Street Energy Partners, West Street Infrastructure Partners III, and West Street Capital Partners VII, (collectively the “West Street Investors”), together with Riverstone Holdings LLC (“Riverstone”), to purchase the equity securities of Lucid Energy Group II, LLC (“Lucid II”) in a 50:50 joint venture arrangement for approximately US$1.6 billion in cash. Lucid II, an energy company providing midstream services to crude oil and natural gas producers in onshore U.S. basins, is currently sponsor-owned by EnCap Flatrock Midstream Fund III, L.P. and management. Lucid II serves the region's leading supermajor and independent oil and gas producers. The Lucid II assets included in the transaction are located in the core of the Northern Delaware Basin and are known as the South Carlsbad Natural Gas Gathering and Processing System and the Artesia Natural Gas Gathering and Processing System.
The Fried Frank team was led by corporate partners Robert C. Schwenkel and Mark H. Lucas and included corporate partners Michael T. Gershberg and F. William Reindel; antitrust and competition partners Nathaniel L. Asker and Tobias Caspary; executive compensation & ERISA partner Donald P. Carleen; litigation partner Peter L. Simmons; tax partners Michael J. Alter and Michelle B. Gold; white collar and securities enforcement partner Steven M. Witzel; corporate special counsel Andrew J. Klein; corporate real estate special counsel Jessica H. Mayes; environmental special counsel Donna Mussio; intellectual property and technology special counsel Jason L. Greenberg; corporate associates Maria C. Grabis, Caitlin M. Hyduke, Erica Jaffe, and Justin A. Schenck; antitrust and competition associates Matthew E. Joseph and Neda Moussavi; environmental associate Samuel K. Dykstra; intellectual property and technology associate Alana Berrocal Rodriguez; litigation associate Amanda Giglio; tax associates Rebecca C. Freeland and W. Reid Thompson; corporate law clerk Arielle D. Matza; and executive compensation & ERISA law clerk Maggie A. Kornreich.