Silver Wolf Midstream (“Silver Wolf Midstream”), a midstream pipeline infrastructure with more than 70 collective years of building, operating, growing and managing oil and gas assets, has engaged Boustead Securities, LLC (“Boustead”) for a $47 million private placement to purchase and repurpose an existing, idle pipeline to meet propane demand throughout the Great Lakes.
Silver Wolf Midstream is offering partnership units in this 225-mile energy pipeline. The Michigan Express Pipeline repurposes an existing natural gas pipeline to deliver propane to Central and Northern Michigan. The Michigan Express Pipeline represents a unique opportunity to invest in a demand-driven infrastructure project that does not involve costly and complicated construction. The existing pipeline that is expected to be repurposed for the project has an excellent safety record. Furthermore, we believe Michigan’s high levels of statewide propane consumption make it the ideal geographic footprint for propane delivery.
According to the U.S. Energy Information Administration, Michigan currently has the largest number of residential users of propane than any other state in the nation. Propane is a byproduct of oil refining and natural gas production, and it is one of the leading alternative fuels worldwide used for home heating and cooking.
Regarded as an approved clean energy source by the 1990 Clean Air Act, propane is not harmful to soil, groundwater or fresh water. In the event of a leak or spillage, propane converts to a non-toxic vapor. Due to its relatively low carbon content, propane is a cleaner-burning fuel than diesel or gasoline, which helps reduce greenhouse gas emissions. Furthermore, propane has a much higher combustion temperature than gasoline or diesel, which provides key safety benefits.
We believe the ecological benefits of the pipeline extend well beyond the clean nature of the fuel it will likely carry. The Michigan Express Pipeline is projected to relieve Michigan’s highway traffic of up to 10,000 long haul truckloads of propane per year. This may result in significant reductions of harmful emissions related to truck transportation, mitigate the dangers of truck accidents in the winter months, and reduce road damage associated with long-haul truck transportation.
Source: Michigan Propane Gas Association,
Energy information Agency (Mar 2020)
The Michigan Express Pipeline plans to initially target 68 million gallons of propane, or 14 percent, of regional market share through three prospective load-out terminals strategically located along the pipeline route. Silver Wolf Midstream is raising $47 million in equity with individual units priced at $50,000 along with potential tax benefits as the investment is potentially subject to 100% bonus depreciation to possibly shelter passive 2020 and 2021 income, and/or to generate Net Operating Loss carrybacks to prior years (please consult your tax advisor and offering documents).
This press release is not a solicitation or offer to buy or sell securities. For illustrative purposes only. Investments may be speculative, illiquid and carry a risk of loss. Past performance is not indicative of future results. There is no guarantee that any specific outcome will be achieved.
About Silver Wolf Midstream
Founded in 2020 by energy executive Niel M. Rootare, Silver Wolf Midstream is a nationwide operator of energy-related infrastructure assets. We partner with organizations and municipalities to solve fundamental energy aggregation, delivery and renewable resource challenges and provide long-term cashflow-positive results for our investors. The Silver Wolf Midstream leadership team boasts more than 70 years of experience building, operating, growing and managing fundamental components of the energy infrastructure. With offices in Michigan and Texas, we pursue innovative, demand-driven and low-risk infrastructure projects throughout the nation. For more information, please visit www.silverwolfmidstream.com.
About Boustead Securities, LLC
Boustead Securities, LLC (“Boustead”) is an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions, for a broad client base. Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. Boustead is a majority owned subsidiary of Boustead & Company Limited, a diversified non-bank financial institution. For more information, please visit www.boustead1828.com.
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