Blue Racer Midstream, LLC

Blue Racer Midstream, LLC is a midstream services provider specializing in the gathering, processing, fractionation, and transportation of natural gas liquids (NGLs) within the Utica and Marcellus Shales regions. Founded in 2012, Blue Racer Midstream, LLC operates in Dallas, US, focusing on midstream services for natural gas producers. In November 2018, First Reserve acquired a 50% stake in the company for USD 1. 2 billion from Dominion Energy Inc.

The transaction was completed in December 2018 bringing a strategic shift in ownership. Blue Racer Midstream specializes in a comprehensive suite of midstream services designed to support natural gas producers operating within the Utica and Marcellus Shales. Their core offerings include gathering, processing, fractionation, and transportation of natural gas liquids (NGLs). The gathering system serves as a pivotal link, efficiently collecting natural gas from producers and facilitating its processing and transportation through integrated infrastructure.

Blue Racer Midstream targets a diverse client base, primarily consisting of natural gas producers who require reliable and flexible midstream solutions to optimize their operations and enhance price realizations. The company's services are strategically focused in the southeastern Ohio and panhandle of West Virginia regions, effectively addressing the needs of producers in these key geographic markets. Blue Racer Midstream generates revenue through its extensive midstream operations, which involve multiple transaction structures primarily centered around B2B engagements. The company establishes partnerships with natural gas producers, providing them with vital infrastructure and processing capabilities in exchange for service fees tied to the volumes of gas gathered and processed.

This transactional framework allows Blue Racer to capture value at multiple points in the supply chain, from gathering to fractionation and transportation of NGLs. The pricing structure typically reflects the services rendered, with fees assessed based on the quantity of resources processed or transported. This model ensures that Blue Racer Midstream remains competitive while meeting the operational needs of its clients across the Appalachian basin. Blue Racer Midstream's recent acquisition by First Reserve positions the company for strategic growth in the midstream sector.

The funding from the USD 1. 2 billion transaction will be utilized to enhance existing infrastructure and expand services in the Appalachian region. While specific upcoming products have not been disclosed, the company is expected to leverage its strengthened financial position to explore expansion opportunities within new geographic areas, focusing on increasing its service footprint and enhancing capabilities by the end of 2021.