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Company’s Gathering and Processing Assets Serve the Mississippi Lime and Cana Woodford Shale Plays in Northwestern Oklahoma

TULSA, Oklahoma-- Caballo Energy, LLC announced today that the company has acquired Eagle Chief Midstream, LLC, which owns a natural gas gathering and processing system in northwestern Oklahoma.  The Eagle Chief assets are strategically located at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays. Eagle Chief is connected to more than 370 wells and serves 25 producers.

The Eagle Chief system includes more than 600 miles of natural gas gathering pipelines, compression and processing assets located in Alfalfa, Blaine, Garfield, Major and Woods counties.  In early 2013, the company will install a new cryogenic plant, bringing total natural gas processing capacity to approximately 100 million cubic feet per day (MMcf/d).

Caballo delivers processed gas to ONEOK Gas Transportation and Panhandle Eastern Pipe Line. Natural gas liquids are delivered to ONEOK NGL Pipeline. The Eagle Chief system also includes salt water disposal and crude oil gathering systems.

Caballo Energy is backed by private equity commitments from EnCap Flatrock Midstream of San Antonio. “The Mississippi Lime and Cana Woodford Shale are two of the most exciting plays in the country,” said Dennis Jaggi, one of EnCap Flatrock Midstream’s three managing partners and a member of Caballo Energy’s board of managers. “We’re seeing a surge in drilling activity in northwestern Oklahoma in the Mississippi Lime formation. This is a great acquisition in an underserved region with very strong demand for gathering, compression and processing services. Acquisition of Eagle Chief will enable Caballo Energy to grow as demand accelerates.  We look forward to working with producers to improve their economics by providing effective service and multiple options for moving gas and crude to market.”

About Caballo Energy, LLC
Tulsa-based Caballo Energy is a midstream services company formed to acquire, develop and manage natural gas gathering, compression, treating, processing and marketing assets. 

The members of Caballo’s senior management team have a combined 100 years of experience in natural gas gathering and processing. President and CEO Robert Firth began his career with Northern Natural Gas and subsequently held operations, commercial and management positions at Panda Resources, Transok, ScissorTail Energy, Spectrum Field Services and Atlas Pipeline, serving as CEO of Atlas Pipeline Mid Continent from 2004 to 2009.

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.

About EnCap Flatrock Midstream
Based in San Antonio, EnCap Flatrock Midstream is a private equity firm founded in 2008 by EnCap Investments L.P. and Flatrock Energy Advisors. The firm provides value-added private equity capital to proven management teams focusing on midstream energy infrastructure opportunities throughout North America. The EnCap Flatrock Midstream team is led by Dennis Jaggi, Billy Lemmons and Bill Waldrip, who have worked together for virtually all of the past 30 years in the midstream sector of the oil and gas industry. With more than 95 years of midstream experience and 125 prior advisory clients, the principals at EnCap Flatrock Midstream have been directly involved in a total of approximately $4.1 billion in energy transactions and investments. The firm has more than $1.2 billion in midstream equity under management and 66 prestigious institutional investors.

EnCap Investments L.P. is the nation’s leading source of private equity to the independent oil and gas sector. The firm has raised 15 oil and gas investment funds totaling more than $11 billion. Over the past 23 years the firm has provided growth capital to more than 180 upstream and midstream oil and gas companies.