New midstream company launches with $150 million in financing

A new Houston-based midstream company announced $150 million in capital commitments Tuesday and said it expects to name its first project soon.

A.J. Brass, president of Isis Energy, said the company probably will focus on handling heavy crude oil and other products.

“Historically we have a speciality around the heavy product side of the business,” he said. “We tend to like those products that aren’t typically handled by light product facilities.”

Brass was previously president of Gulf Coast Asphalt Company, where he worked with other members of the Isis team: Chief Financial Officer Jason Goldstein, Vice President Kenny Hucker, Vice President Joe Mattingly Jr. and Vice President and General Counsel Dave Hubenak.

“We’re not starting fresh,” he said. “We’ve got a lot of traction already.”

The new company announced a $150 million commitment from EnCap Flatrock Midstream, a San Antonio-based private equity firm, and said it will use the money to build logistics and infrastructure for moving, storing and blending low-gravity crude and other products, including residual fuel oil, asphalt and reclaimed products, serving producers, refiners, traders and other marketers and suppliers by both rail and water in the United States and Canada.

Brass said he and the rest of the management team are considering several projects but have not committed to any.

They may do several smaller projects, or tackle one large project, he said.