American Energy Continues to Shake Things Up; Another Company Breaking Off and Taking New Name

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From an American Energy Partners press release:
American Energy – Midstream, LLC (AE-MidCo), announced today that it is changing its name to Traverse Midstream Partners LLC (Traverse Midstream) and is transitioning to a standalone company, fully independent of the broader American Energy Partners, LP (AELP) platform, a process that has been contemplated since the company’s founding in June 2014 and that will be effective on July 1, 2015. Traverse Midstream has been capitalized by a $500 million equity commitment provided by The Energy & Minerals Group (EMG), and additional equity provided by Aubrey. K. McClendon and other members of AELP management and affiliated parties of Mr. McClendon. 
Traverse Midstream has two significant investments in critical midstream infrastructure designed to serve the Appalachian shale basins.  The Company has a 35% non-operating equity interest in Rover Pipeline, LLC (Rover Pipeline), a 710 mile interstate natural gas pipeline company majority owned and operated by Energy Transfer Partners, L.P. (ETP).  The Rover Pipeline project will allow for seamless natural gas pipeline service to its shippers from the Marcellus and Utica production areas to markets in the Midwest, Great Lakes and Gulf Coast regions of the U.S., and to the Union Gas Dawn Hub in Ontario, Canada, through its connection to Vector Pipeline. The Rover Pipeline is supported by 15 and 20 year fee-based contracts to transport over 3.0 billion cubic feet per day (Bcf/d) of natural gas.  Transportation from the supply regions to the Midwest Hub near Defiance, Ohio is expected to begin by the end of 2016 to serve the Gulf Coast and Midwest markets. The remaining service to other markets including Michigan and the Union Gas Dawn Hub will be in service by mid-2017. 
Traverse Midstream also has a 25% non-operating equity interest in the Ohio River System, which includes construction of a 52-mile, 36-inch gas gathering trunkline that will be capable of delivering up to 2.1 Bcf/d to Rockies Express Pipeline and Texas Eastern Transmission on the southern end of the line and an additional 1.4 Bcf/d through a 12-mile, 30-inch lateral to the interstate grid on the northern end of the line which will bring overall system deliverability to 3.5 Bcf/d.  The Ohio River System will access Monroe, Belmont, Jefferson and Harrison counties in eastern Ohio with an expected in service date of Q3 2015.  This project is also majority owned and operated by ETP. 
“We are very proud to announce our move to a standalone company and our name change to Traverse Midstream Partners,” said Dave Shiels, Traverse Midstream CEO.  “We currently have investments in two of the most important natural gas pipeline projects for the Utica and Marcellus regions, both of which will be operated by one of the premiere pipeline operators in the industry, Energy Transfer Partners.  We are excited to be part of these efforts and look forward to delivering our contribution to their success and to other projects in the future as a standalone company.” 
Aubrey K. McClendon, Chairman and CEO of AELP and Chairman of Traverse Midstream, commented, “I am very pleased today to see our second platform company announce its transition to becoming a fully independent standalone company.  Along with Ascent Resources Corporation’s announced separation two weeks ago, today’s Traverse Midstream announcement serves as a reminder of the successful collaboration between EMG and AELP in starting, funding and developing first-class companies dedicated to a particular play, basin or strategy. I’ve worked with Dave Shiels over the last five years and have 100% confidence in his executive abilities and I look forward to his leadership making Traverse Midstream one of the industry’s most successful midstream companies.”  
### 
Forward-Looking Statements 
This press release may include certain statements concerning expectations for the future that are forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. We undertake no obligation to update or revise any forward-looking statement to reflect new information or events. 
About Traverse Midstream Partners LLC: 
Traverse Midstream Partners LLC (formerly American Energy – Midstream, LLC) is developing an expanding portfolio of midstream assets strategically focused on natural gas gathering and processing systems and long-haul pipelines.  The Energy & Minerals Group is the exclusive private equity investor of Traverse Midstream Partners LLC and holds a majority of the board seats. 
About American Energy Partners, LP: 
American Energy Partners, LP was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays.  For additional information, please visitwww.americanenergypartners.com. 
About The Energy & Minerals Group: 
EMG is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $16.8 billion of regulatory assets under management (RAUM) and approximately $8.3 billion in commitments have been allocated across the energy sector since inception. For additional information, please visitwww.emgtx.com.

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