Velocity Makes Minority Investment in M Wright Services

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
MWS Board

M Wright Services, LLC (“MWS”) announces a minority investment by the partners of Velocity Management Advisors LLC (“VMA”)

M Wright Services is a privately-held, founder-owned company that specializes in pipeline construction for Midstream oil and gas customers.  Founded in 2011 by Marcus Wright, MWS has grown to be among the larger pipeline construction companies in their region, serving Midstream customers in the Permian, Anadarko, Delaware and North Texas.

MWS has offices and facilities in Weatherford, Oklahoma and Midland, Texas. As they broaden their geographic reach, expand into mainline pipeline projects and develop their plant construction services, MWS has been looking to strengthen their Board with experienced entrepreneurs, investors and operators who understand the Midstream market and will support their growth.

Velocity Management Advisors is a partnership of the three senior managers who, with the backing of Energy Spectrum Capital, acquired, built and monetized over $800 million in Midstream assets since 2008. VMA has been serving E&P companies with midstream operations in Texas, Louisiana and Oklahoma for over 27 years and has a combined 45+ years of midstream expertise and 60+ years of oil and gas experience. Most recently, Velocity Midstream Partners was acquired by Enable Midstream Partners in 2018 for $442 million. Their assets included approximately 150 miles of pipeline capable of flowing approximately 225,000 barrels per day, along with over 400,000 barrels of owned and leased storage and 26 truck bays capable of unloading more than 100,000 barrels per day, also holding a majority interest in a 26-mile pipeline system joint venture.

Since divesting their interest in Velocity Midstream, VMA’s partners have been active investors and serving on the Boards of numerous other companies. Their investment in MWS represents their most significant investment to date and brings active engagement on the Board of MWS.

In addition to their capital investment, VMA’s three partners are joining the Board of MWS:

  • Rick Wilkerson, former President and CEO of Velocity Midstream. Rick has 28 years of Midstream and E&P Industry Experience with Velocity Midstream Partners, Autana Pipeline, Midstream Gas Services, American Central, and Samson Resources.
  • Van Nguyen, former Vice President and Chief Operating Officer of Velocity Midstream. Van served 8 Years as COO of Velocity Midstream, responsible for construction and operations over two extensive crude/condensate gathering and transportation systems, CDP/LACT systems and truck in/out oil terminal and storage facilities. Prior experience included project, plant and pipeline engineering for American Central Gas and Markwest Energy, Dresser Engineering and Philips Petroleum.
  • Mike Parker, former Vice President and Chief Financial Officer of Velocity Midstream. Mike has 30 years’ financial management experience in Midstream and E&P Finance and Accounting with Velocity Midstream, Autana, Markwest Energy, Williams, MAPCO, and Amerada Hess.

According to Marcus Wright, President of M Wright Services: “Over the past fifteen years, we have bootstrapped growth at MWS, winning new opportunities with new customers, growing our reputation for delivering pipeline construction projects on time and on budget, and gaining MSAs from every major midstream company in our region. As we move to the next stage of our growth, I am so excited to welcome Rick, Van and Mike to the team. We have a lot to learn from their experience growing companies in the Midstream space and we’ll benefit from their knowledge, reputation and track record in the industry.”

Rick Wilkerson, President and CEO of VMA stated: “With Marcus and the MWS team, we have found a company with tremendous potential to expand its service offering and become the true turnkey solution for Midstream companies to develop their gathering systems. We know MWS’ world from a customer perspective and we’re ready to get to work, supporting MWS’ leadership team and becoming the gold standard across pipeline and plant construction.”

Managing Directors of ClearRidge (M&A and Transaction Advisors) represented MWS on this transaction. McAfee & Taft provided legal advice to MWS and Hall Estill provided legal advice to VMA.

Terms of the transaction are not disclosed.