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Midstream: Outsourcing: Traverse Midstream: Financial Reporting & Compliance

Traverse Midstream Partners LLC (“the Company”) was formed in June 2014 by The Energy & Minerals Group (EMG) to build a portfolio of non-operated midstream assets. Through key relationships with EMG’s upstream subsidiaries, the Edmond, Oklahoma-based firm quickly closed two highly accretive deals: Rover Pipeline and Ohio River System. Given its non-operated structure, the Company is intently focused on partnering with best-in-class operators. Traverse Midstream has funded over $800 million equity commitments from EMG and secured total financing of over $2 billion to fully fund capital expenditures on its two investments.

Opportune’s Outsourcing professionals were engaged by the client to provide back-office accounting, including accounts payable, treasury and financial reporting. We currently provide monthly general and administrative expense reporting, as well as quarterly financial statements and footnotes, which are reviewed by the client’s audit team, Grant Thornton. Opportune’s Complex Financial Reporting (CFR) team provides technical accounting insights related to the Company’s debt and how it should be recorded, as well as going-concern analysis. Moreover, Opportune recently helped the client implement hedge accounting pursuant to an interest rate swap program.

Since the Company’s financials and footnotes are audited or reviewed each quarter, it is imperative that we meet deadlines, that our work is accurate and that we facilitate the audit by preparing Provided by Client schedules and pulling requested support in a timely manner. We have done this each quarter. Opportune’s CFR group worked with the Company to record its term loan and amortize costs in accordance with U.S. GAAP and helped adjust the calculation when the client upsized its debt during Q3 2018.

Opportune adds value by assisting the client in management reporting, tracking expenditures and investments in the assets, and in providing financial reports for debt covenant calculations. Moreover, Opportune communicates directly with the audit team to promote audit efficiency. In addition to the recurring monthly deliverables provided to the client, Opportune serves in an advisory capacity for complex financial issues, such as hedging, debt modification, premium amortizations and any other accounting or industry questions that arise.

Opportune Outsourcing currently provides back-office services for more than 200 public and private companies across the world. Our outsourcing team offers expertise in transactional reporting, land administration and reporting, joint interest billing, accounts payable/receivable, production allocation and reporting and software system administration. For more information, CLICK HERE.

Carl Wimberley

PartnerOpportune LLP