ARM Midstream and HPS investment partners announce commercial operations at new natural gas and crude gathering and processing system in Oklahoma’s stack play

Kingfisher System Adds Midstream Infrastructure and Access to Strategic Market Takeaway

Houston, TX, July 11, 2016—ARM Energy (ARM) and HPS Investment Partners, LLC (HPS) announced today that Kingfisher Midstream, LLC officially began full operation of the Kingfisher Midstream Lincoln plant in Oklahoma earlier this month. ARM Midstream, a subsidiary of ARM Energy began construction of the facility in September 2015 in partnership with capital provided by HPS.

“Bringing the Kingfisher Midstream Lincoln plant online and on schedule is an exciting milestone for our partnership and for producers in the STACK,” said Zach Lee, ARM’s chief executive officer. “The facility will greatly alleviate some of the production bottlenecks in the STACK area by providing 60,000 MCFD of needed processing capacity. Producers in the area may now benefit from an unconstrained gas gathering option as well as a centralized crude oil truck load out facility.”

“HPS greatly values its partnership with ARM and is excited to help launch this best-in-class midstream system for producers in the STACK,” said Don Dimitrievich, a Managing Director at HPS. “Development of the Kingfisher Midstream Lincoln plant reflects the increasing focus of HPS on investing in midstream assets in production areas, such as the STACK, where some of the best economics in the industry currently exist.”

The project is anchored by a long-term commitment of more than 100,000 net acres dedicated to Kingfisher Midstream, LLC. Phase one features a state-of-the-art, 60,000 MCFD cryogenic processing plant, over 100 miles of high and low pressure gas gathering pipeline, over 100 miles of crude gathering, a 50,000 bbl crude storage facility, condensate stabilization, and six crude oil truck loading stations. It includes 15,000 horsepower of compression, giving it the ability to accept low and high pressure gas from field production. Phase two will feature an additional 200,000 MCFD of processing capacity, incremental gas and crude gathering, and added market connectivity.

“Producers in the STACK continue to have impressive results from multiple horizons adding to the economic viability of the play,” said Taylor Tipton, President of ARM Midstream and ARM Energy Management. “As the STACK develops, and as Kingfisher Midstream’s processing capabilities expand, the added processing capacity, firm residue take away, and crude pipeline connectivity to Cushing will ensure those economics are protected.”

About HPS Investment Partners, LLC

HPS is a leading global investment firm with a focus on non-investment grade credit.  Established in 2007, HPS currently has 92 investment professionals and is headquartered in New York with seven offices globally. HPS was originally formed as a unit of Highbridge Capital Management, LLC (HCM), a subsidiary of J.P. Morgan Asset Management.  In March 2016, the principals of HPS acquired the firm from J.P. Morgan, which retained HCM’s hedge fund strategies. As of early June, HPS has approximately $30 billion of assets under management and since inception has invested over $3 billion in the energy and power industries.