Medallion Midstream Services Announces Southern Delaware Basin Crude Oil Pipeline

Medallion Midstream, LLC and its affiliate, Medallion Midstream
Services, LLC, (Medallion) today announced that it has entered into a
letter of intent to construct a new Delaware Basin crude oil pipeline
system to provide crude oil gathering and transportation services for
Parsley Energy (NYSE: PE) (Parsley). The new pipeline will be anchored
by Parsley’s long-term dedication to Medallion of approximately 35,000
acres held under lease and/or mineral interest in Pecos and Reeves
Counties, Texas.

Medallion’s Delaware Basin pipeline system will initially consist of
approximately 45 miles of 16-inch mainline and approximately 25 miles of
smaller diameter gathering pipelines along with a crude oil station in
Pecos County consisting of crude oil storage and truck unloading
facilities. The pipeline, which is expected to have an initial capacity
of 100,000 barrels per day, will originate within the Parsley leases and
will end in Crane County, Texas at an interconnection into Medallion
Pipeline Company’s existing 600-mile Midland Basin header system,
accessing multiple Permian Basin long-haul take away pipelines. The
parties expect to finalize and sign a definitive agreement in the first
quarter of 2017 and the new crude oil pipeline is expected to start
initial service in June 2017.

“We are honored that Parsley has chosen Medallion to provide crude oil
gathering and transportation services for its core Delaware Basin
acreage,” said Medallion Chief Executive Officer Randy Lentz. “Parsley
is one of the most recognized and dynamic companies in the energy space
today and we are excited to continue our partnership with them.”

About Medallion:

Medallion is an Irving, Texas based full services midstream provider
specializing in the construction and operation of natural gas and crude
oil midstream infrastructure. Medallion delivers customized, turnkey,
oil and gas solutions and exceptional customer service. Medallion is a
portfolio company of The Energy & Minerals Group. To learn more about
Medallion, please visit www.medallionmidstream.com.

About The Energy & Minerals Group:

The Energy & Minerals Group (EMG) is the management company for a series
of specialized private equity funds. The Firm was founded by John
Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses
on investing across various facets of the global natural resource
industry including the upstream and midstream segments of the energy
complex. EMG has approximately $14.6 billion of regulatory assets under
management and approximately $9.8 billion in commitments have been
allocated across the energy sector since inception.

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