Costar Midstream LLC and Energy Spectrum Partners VI have come together to acquire certain natural gas processing assets in the Granite Wash area of the Texas and Oklahoma Panhandle.

Costar’s objective is to build a sizable midstream business focusing on gas gathering and processing assets that can be acquired and developed. This is the first portfolio investment for ESP VI, which is a $998.7 million private equity fund focused exclusively on midstream infrastructure opportunities and management teams.

Costar is founded by Dale Singleton and Kevin Sullivan, and they have formed Costar to acquire and develop midstream opportunities in the $50 to $250 million range.

"This management team has a history and track record in the midstream business that is extensive and very successful, and we are pleased to be a part of their next venture," said Jim Benson, managing partner of Energy Spectrum. "We have known Dale and Kevin for over 20 years, and we consider them as being a proven team with significant potential. Their ability to originate, close and enhance midstream deals makes our investment decision an easy one."