We are midstream specialists.
Our team are experts in hydrocarbon and energy evolution-related midstream infrastructure. Our investment focus is in hard-asset businesses, including gathering and transportation pipelines, treating and compression assets and services, processing and fractionation plants, storage and terminalling facilities, logistics handling and disposal facilities, and other such assets or companies providing similar services.
There is no substitute for experience.
We support seasoned management teams that have proven track records of success and fit a well-established profile. Specifically, we look for companies that have strong technical and operational skills, a demonstrable record of value creation, a well-defined business plan and a common understanding of risk and midstream fundamentals.
We target companies in the early stages of developing their business plans.
Small companies have greater growth prospects than their larger counterparts and significant opportunities to benefit from the operating leverage created by spreading fixed costs over an expanding revenue base. These companies also receive a significant increase in the valuation multiples applied to their operating profits as they become larger and more sustainable over time. We firmly believe that growth companies make excellent investments when they are nurtured and advised by a capital provider with deep experience in the midstream sector and expertise in managing and building businesses, like EnCap Flatrock Midstream.
We are relationship driven.
Developing strong internal and external relationships is essential to our mission at EnCap Flatrock Midstream. We look for management teams that are cohesive and value teamwork, just as we do. At the end of the day, midstream is a service business. We only invest in management teams that understand the value of building strong relationships and put a premium on providing superior customer service.
We are disciplined about risk management.
We take a conservative, disciplined approach to advancing capital, doing so in incremental stages as each business plan proves itself over time. We limit the use of leverage to fund growth and apply our thoughtful investment philosophy that balances capital preservation with value creation using the risk management tools that have guided our founders for three decades.