The Midstream Arc
One computer at a loss in 1994. $2.6 billion ONEOK acquisition in 2024. Same principals throughout.
It started with one computer I sold at a loss in 1994. Texas Energy Management to Star to Cantera to CoStar to Monarch to Medallion to ONEOK. Same principals, every transition.
In 1994 I was running a small firm called Onsite Computer Specialists. Texas Energy Management was a small Dallas pipeline operation. Their CFO, Dave Palmer, had already cut a PO to CompUSA for a new computer. He asked me why he should buy from me instead. I told him, "When you buy a computer from me, you get me. When you buy from CompUSA, you get whoever is behind the counter that day." He bought from me. I lost a hundred dollars on the deal. My partner thought I was insane.
Dave moved to Star Natural Gas as CFO and brought me with him. Star was run by Dale Singleton, with Terry Klare as president. I met Randy Lentz there in 1997. Twenty-nine years later Randy is the EVP and COO of ONEOK and I am still embedded.
Dale became a mentor. Terry, who was Star's president and is still my client today at Monarch, taught me how midstream operations actually run. Later, when the network broadened into Cantera, I met Greg Sales and Judson Williams. Greg gave me a thirty-year working relationship that continues at Monarch. Jud taught me how M&A transitions actually work, a skill that has shaped every ownership change I have worked through since. I came in selling computers. I left thirty years later with a working understanding of how gathering systems, processing plants, and pipeline economics actually run. The technology was the entry. The relationship was the education.
Star grew the gathering system and then sold the assets to Cantera Natural Gas in the early 2000s. Cantera was backed by Metalmark Capital, a New York private equity firm that has anchored multiple midstream platforms over two decades. I supported the team through the consolidation. The old Lone Star Gas gathering system in North Texas. Expansion into the Grand Junction area in Colorado and Big Spring in Wyoming. The 2003 acquisition of CMS Field Services, a Tulsa-based gathering and processing operation Cantera bought from CMS Energy. When Cantera divested, the assets went in three directions. In late 2003 the North Texas gathering system, more than 2,000 miles of pipeline and five processing plants serving the Fort Worth Basin and the Barnett Shale, sold to Enbridge Energy Partners for $247 million. I worked the integration into Enbridge's operations under contract through the transition. In 2007 the Wyoming Powder River Basin gathering assets sold to Copano Energy for $675 million. Other assets transitioned to Penn Virginia. Randy went with Penn Virginia as an executive.
While the Cantera team was regrouping, Dale started a new company called CoStar. He brought me in from day one. He brought Dave Palmer back in as CFO. That was the last project Dave and I worked together. I took CoStar from formation to sale. Dale passed during that period. The company was sold. Dave retired.
Terry, Greg, and Jud regrouped and started a new platform. That platform became Monarch Natural Gas in Houston, also backed by Metalmark. Terry is president. Greg is CEO. Jud is CFO. I have been with them across every Monarch entity since: the Utah gathering system integration, the Mainesburg gathering system in Pennsylvania, Pro-Gas Services, Valor Fabrication, and the Monarch Oil Pipeline I was instrumental in standing up in the Texas Panhandle. The Monarch work is still active. I still support that SCADA today.
In 2010 Randy called me to a rented office above Weinberger's Deli on Main Street in Grapevine. He had taken his proceeds from a previous midstream sale and bought a gas plant. He needed a domain name, an email server, a phone line, and someone to figure out the technology that wasn't supposed to exist yet. I registered medallionmidstream.com that day. Thirteen years of build-out followed. Randy gave me the kind of seat most consultants never get: peer-level access to executive decisions, involvement in transactions, a request to participate in audits. I built a career on what I learned in that seat. Corporate IT, SCADA on AVEVA, cybersecurity across IT and OT, control room support, and the architecture that survived a hyper-converged failure during the GIP era. By the time of the first sale the pipeline ran more than 1,200 miles, moved approximately 850,000 barrels a day, and supported 150 to 500 users across 10 to 25 sites. Global Infrastructure Partners acquired Medallion for $1.825 billion in 2017. ONEOK acquired Medallion from GIP for $2.6 billion in October 2024. I was directly involved in the technology due diligence and integration planning for both transactions. I am still embedded post-acquisition.
Thirty years. Seven companies. Three private equity sponsors. Two billion-dollar transactions. The arc started because I told a CFO he was buying me, not a computer. He believed me. He brought me into a room of operators who taught me an industry. They are still in the room. So am I.