SOURCE: Delphi Midstream Partners

Delphi Midstream Partners

July 12, 2010 10:01 ET

Delphi Midstream Partners Acquires Laser Midstream Energy; Establishing Pre-Eminent Northeast Natural Gas Gathering Company

NEW YORK, NY--(Marketwire - July 12, 2010) -  Delphi Midstream Partners, LLC (DMP) announced today that it has completed its acquisition of Laser Midstream Energy, LP which is developing the first natural gas gathering project in northeastern Pennsylvania and southern New York state. Following the transaction, the name of the company was changed to Laser Northeast Gathering, LLC (Laser).

Laser's natural gas gathering project is proposed to run 21 miles from Susquehanna County, Pennsylvania, to the New York border, then another 9 miles within Broome County, New York to where it interconnects with the Millennium interstate pipeline in the town of New Windsor. The entire system will consist of approximately 178,000 feet of 16" diameter steel pipeline with an additional 32,000 feet of 12" diameter or smaller steel pipeline laterals in Susquehanna County. The current estimated construction cost of the project is approximately $50 million.

Effective immediately, DMP's team of experienced and local managers will join Laser to continue the successful development of this project. Thomas Karam will be Chairman and CEO of Laser and Michael Walsh will serve as CFO. Also joining Karam and Walsh at Laser will be Vince Bonaddio as VP of Operations and Engineering and Harry Dowling as VP of Governmental & Regulatory Relations.

"We are delighted to have Delphi's strong local experience, outstanding management group and significant financial strength added to our already top-flight team of industry veterans at Laser," said I.J. "Chip" Berthelot, II who will remain on as Laser's President. "Tom Karam's deep roots in Pennsylvania and his natural gas experience bring a dimension to our team that is hard to match."

Adding even more value to the combination, DMP also holds the rights to construct and operate midstream infrastructure related to certain acreage leased by Carrizo Oil and Gas in northeast Pennsylvania.

"We are very excited about helping bring about an economic renaissance to this region through the safe and responsible development of this important resource," said Karam. "As natives of this region, we are also reassured that the entire Laser team shares our commitment to serving our customers and the communities in which we operate."

DMP was founded by Thomas F. Karam and Michael J. Walsh with an equity commitment from American Securities, LLC (AS) in support of a strategy to invest in and acquire up to $2 billion of midstream energy sector companies and assets. Mr. Karam has more than 20 years of energy sector experience, most recently serving as President & COO of Southern Union Company (SUG), one of the largest natural gas pipeline companies in North America. Prior to his tenure at SUG, Mr. Karam was the CEO of Pennsylvania Enterprises, Inc. (PEI) and PG Energy, Inc. PEI was a NYSE listed company which owned gas and water utility operations in Pennsylvania. Before establishing DMP, Mr. Walsh was a partner and founding member of Highstar Capital where he was responsible for Highstar's investments in the midstream energy sector.

In October 2009, DMP acquired the Mansfield natural gas gathering and compression system, located in Tarrant County, Texas from Carrizo Oil & Gas, Inc. (Carrizo). The Mansfield System has a current operating capacity of 70 mmcf per day and can be expanded to 90 mmcf per day with additional compression.

DMP is interested in midstream energy businesses and assets in North America requiring a minimum equity investment of $50 million. DMP typically seeks control positions, but will also consider joint ventures or influential minority interests. The DMP business model is to create long-term value in its investment companies through operational and commercial excellence, organic and strategic growth opportunities and management-investor alignment of interests.

For more information about the new company and the PA-NY gathering line project, please visit

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