IRVING, Texas–(BUSINESS WIRE)–Medallion Pipeline Company, LLC (Medallion), a subsidiary of Medallion
Midstream LLC, today announced the successful closing of its binding
open season for a major expansion of its existing crude oil pipeline
system in the Midland Basin (the Expansion). As previously announced,
the Expansion will nearly double the capacity of Medallion’s existing
Wolfcamp Connector mainline system through a partial loop of the
Wolfcamp Connector system (the Wolfcamp Expansion) and will increase the
capacity of the existing Howard Lateral (the Howard Expansion). The
Wolfcamp Expansion will increase the existing capacity on the Wolfcamp
Connector from 105,000 barrels per day to 200,000 barrels per day and
the Howard Expansion will increase the capacity of the existing Howard
Lateral from 60,000 barrels per day to 85,000 barrels per day.

Based on the binding capacity bids received during the open season,
Medallion has executed a long-term Transportation Services Agreement
sufficient to move forward with the construction of the Expansion. In
addition, one existing committed shipper on the Wolfcamp Connector has
agreed to extend its current Transportation Services Agreement to obtain
the benefit of the Expansion rate. Once complete, the Expansion will
provide much-needed capacity to transport crude oil produced in the
Midland Basin to downstream pipelines and markets. The Expansion is
expected to commence partial commercial operations in the third quarter
of 2017 and full commercial operations in the fourth quarter of 2017.

“The response to the open season and the continued interest of potential
shippers in increased pipeline capacity in the Midland Basin is
compelling,” said Randy Lentz, Medallion CEO. “We are excited about the
significant production growth in the Midland Basin and the opportunity
to meet our customers’ growing needs.”

Because of the significant interest expressed by potential shippers
during the open season, and based on ongoing discussions with potential
shippers, Medallion is conducting a supplemental open season to solicit
additional binding long-term commitments for a further expansion of the
Medallion system. The supplemental open season maintains the same
transportation options, the same origin and destination points, and the
same rates as proposed in the open season, but provides a further
opportunity to increase the capacity beyond the levels originally
proposed in the open season. The supplemental open season provides an
opportunity for interested shippers to acquire long-term firm capacity,
under minimum 10-year term Transportation Services Agreements and other
eligibility requirements, as a committed firm shipper on either the
Wolfcamp Expansion, the Howard Expansion, or both. The supplemental open
season opens on June 15, 2017, and will close as of 4:00 p.m. CDT on
June 30, 2017. All bids must be submitted to Medallion during the
supplemental open season. Bona fide prospective shippers may obtain
copies of the Transportation Services Agreement, as well as the proposed
Federal Energy Regulatory Commission and Texas Railroad Commission
tariffs by contacting the Medallion representative listed below.
Medallion requires a prospective shipper to execute a Confidentiality
Agreement prior to delivery of these documents. More information
concerning the Expansion and the binding open season is available on the
Medallion website www.medallionmidstream.com
or by contacting the Medallion representative listed below.

About Medallion Midstream, LLC

Medallion Midstream is an Irving, Texas based full services midstream
provider specializing in the design, construction and operation of
natural gas and crude oil infrastructure. Medallion delivers responsive,
reliable and comprehensive services and solutions for its customers.
Medallion is a portfolio company of The Energy & Minerals Group. To
learn more about Medallion, please visit www.medallionmidstream.com.

About The Energy & Minerals Group

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 $16.0 billion of regulatory assets under
management and approximately $10.4 billion in commitments have been
allocated across the energy sector since inception.

Contacts

Open Season Inquiries
Medallion Pipeline Company, LLC
Paige
Snider, 972-746-4401
[email protected]
222
West Las Colinas Blvd., Suite 1140E
Irving, Texas 75039
or
Media
Inquiries
M2H Communications
Meredith Howard, 210-737-4478
[email protected]