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BP Energy Partners LLC sold its interest in portfolio company Mesa Natural Gas Solutions LLC to a different investment group.
BP Energy Partners, originally sponsored by legendary oilman T. Boone Pickens, sold ownership of Mesa to Houston-based investment manager Arroyo Investors, the companies said in separate news releases.
Financial terms of the transaction between BP Energy Partners and Arroyo were not disclosed.
Mesa, headquartered in Loveland, Colorado, provides portable power generation products that use wellhead natural gas to mitigate waste and flaring associated with emissions.
“The sale concludes a successful partnership between BPEP and Mesa in organically building out a leading distributed power business that has enabled the oil and gas industry to reduce emissions and flaring through electrification,” said Alex Szewczyk, co-founder and managing partner of BP Energy Partners.
Since the company was co-founded with BP Energy Partners in 2014, Mesa has deployed more than 450 megawatts of generation capacity at customer locations. Mesa co-founder and CEO Scott Gromer will remain chief executive of the company.
“We believe this investment represents a differentiated opportunity for Arroyo to own and operate a company that is well positioned to improve grid resiliency and supply critical backup power to multiple industry segments including commercial, industrial, healthcare and military customers,” said Brandon Wax, managing director at Arroyo.
Tudor, Pickering, Holt & Co. served as exclusive financial adviser to Mesa on the deal. The Garden Law Group served as legal counsel to both BPEP and Mesa.
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