EnCap Backs Caballo Energy

Caballo Energy LLC has secured a private equity commitment from EnCap Investments. No financial terms were disclosed. Caballo is a Tulsa-based company formed acquire, develop and manage natural gas gathering, compression, treating, processing and marketing assets.


Caballo Energy, LLC announced today that it has secured a private equity commitment from the EnCap Energy Infrastructure Fund L.P. (EEIF), a private equity fund managed by EnCap Investments, L.P. and EnCap Flatrock Midstream.

Caballo Energy is headquartered in Tulsa, Oklahoma. The company was formed to acquire, develop and manage natural gas gathering, compression, treating, processing, and marketing assets. Caballo’s business philosophy is distinguished by an overriding commitment to safety, the development of collaborative relationships across the midstream value chain, a focus on highly efficient operations, and rapid response to customer needs. Company activities will be concentrated in the mid-continent region, including Texas, Oklahoma, Louisiana, Kansas, and New Mexico.

Robert Firth, President of Caballo Energy, and David Hall, Vice President, have over 60 years’ combined experience in the natural gas gathering and processing business. Firth served as CEO of Atlas Pipeline Mid-Continent, L.P. from 2004 to 2009. Under his leadership, the company grew from $60 million in revenues to over $1.5 billion. David Hall was the CFO at Atlas Pipeline during the same period, managing accounting, mid-office, and corporate planning and development activities. Firth and Hall led the company’s organic growth as well as the successful completion and integration of three acquisitions totaling more than $2.2 billion. They have been working together in the oil and gas industry for seventeen years.

“We are excited to re-enter the gathering and processing space. We enjoy working with producers to provide the best service and best price for their commodities,” said Firth. “We are very pleased to be associated with the EnCap Flatrock Midstream team. This is a group that has a deep understanding of our industry and brings Caballo the financial strength to provide our customers with exceptional service,” he continued.

“The management team at Caballo Energy has an outstanding track record of success and creating value that is hard to match,” said Bill Waldrip, Senior Partner at EnCap Flatrock Midstream. “We believe that there are compelling and unprecedented opportunities in midstream. We look forward to working with Caballo to continue the EnCap tradition of generating attractive returns for its investors,” he added.

For more information about Caballo Energy, visit www.caballoenergy.com.

About EnCap Energy Infrastructure Fund, L.P.

EnCap Investments, L.P. and Flatrock Energy Advisors, LLC partnered in 2008 to form and manage the EnCap Energy Infrastructure Fund, L.P. (EEIF). EEIF has secured capital commitments totaling $791.6 million to provide private equity capital for midstream energy infrastructure opportunities throughout North America.

EEIF focuses on providing growth capital to proven midstream management teams in North America and pursues attractive investment opportunities in:

  • natural gas gathering, treating, compression, processing and storage operations
  • oil gathering and transportation
  • natural gas liquid fractionation, storage and transportation
  • produced water handling and disposal
  • CO2 gathering, transportation and sequestration

About EnCap Investments, L.P.

Since 1988, EnCap has been a leading provider of private equity to the independent sector of the U.S. oil and gas industry, closing over $6.0 billion of principal investments and corporate finance transactions. The firm has established 13 oil and gas investment funds with aggregate capital commitments of approximately $6.5 billion and currently manages capital on behalf of over 150 prestigious U.S. and European institutions. For more information, visit www.encapinvestments.com.

About EnCap Flatrock Midstream

In 2008, Flatrock Energy Advisors exited its midstream advisory practice to partner with EnCap in managing the EnCap Energy Infrastructure Fund. The three managing partners, Dennis Jaggi, Bill Waldrip, and Billy Lemmons, have worked together in the oil and gas industry for the past 30 years. With more than 93 years of collective midstream experience and 125 prior advisory clients in the sector, they have been directly involved in approximately $4.1 billion in energy transactions and investments. In 2010, Flatrock changed its name to EnCap Flatrock Midstream to better reflect its new role. For more information, visit www.efmidstream.com.