Caballo Energy, LLC Builds New Cryogenic Processing Plant in Northwest Oklahoma to Serve the Mississippi Lime and Cana Woodford Shale Plays
- Expansion Will Increase Total Processing Capacity to approximately 100 MMcf/d
- Caballo Expands Leadership Team
TULSA – September 18, 2012 - Caballo Energy, LLC (Caballo) announced today that the company is building a new cryogenic processing plant to serve expanding natural gas production in the liquids-rich Mississippi Lime and Cana Woodford Shale plays. Known as the Carmen Gas Processing Plant, the new facility will have the capacity to process 60 million cubic feet of natural gas per day (MMcf/d), bringing Caballo’s processing capacity in the region to approximately 100 MMcf/d. The Carmen plant will be in service by the end of the first quarter of 2013. The plant is strategically located near Carmen, Oklahoma, at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays. The 160-acre site allows for the construction of a second cryogenic processing plant at the same location.
The new Carmen plant and Caballo’s existing Eagle Chief plant serve the company’s Eagle Chief system, which includes more than 600 miles of natural gas gathering pipelines and compression facilities located in Alfalfa, Blaine, Garfield, Major and Woods counties. Caballo delivers processed gas to the ONEOK Gas Transportation and Panhandle Eastern Pipe Line. Natural gas liquids are delivered to the ONEOK NGL Pipeline. The Eagle Chief system also includes salt water disposal and crude oil gathering systems. Caballo acquired the Eagle Chief system in December 2011.
Caballo also announced the addition of three new executives who will play key leadership roles as the company continues to expand. Glenn Powell has joined Caballo as chief commercial officer. Mr. Powell previously served as the chief operating officer Atlas Pipeline Partners, L.P. (NYSE: APL) and has significant experience in commercial development. Wayne Bennett has also joined Caballo as director of engineering operations. Prior to joining Caballo, Mr. Bennett served as senior engineering technician for ScissorTail Energy, LLC (now Copano Energy, LLC, NASDAQ: CPNO) and as area manager for the Elk City subsidiary of Atlas Pipeline Partners, L.P. Mr. Bennett brings Caballo extensive experience in the construction and operation of natural gas processing plants and pipeline systems. Finally, Rich McCullough has joined Caballo Energy as vice president of finance and accounting. Mr. McCullough is a certified public accountant and most recently served as the manager of financial reporting for Alliance Resource Partners, L.P. (NASDAQ: ARLP) and an audit manager for Grant Thornton LLP. Mr. McCullough has important experience in the midstream natural gas business and expertise in various technical accounting matters including business combinations and derivatives.
“The construction of the Carmen plant is a first but very important step in our expansion of the Eagle Chief system,” said Caballo President and CEO Bob Firth. “The liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations provides an attractive return for producers, even under current pricing conditions. We believe this area has significant potential for future growth and we are excited to be in a position to provide the processing capabilities our customers need. Our plans also call for the development of an additional cryogenic processing plant next to the Carmen plant. An additional plant could be up and running rapidly depending upon market conditions and demand, further enhancing our ability to meet the needs of our customers. Additionally, the hiring of these three highly experienced executives - Glenn Powell, Wayne Bennett and Rich McCullough - enhances an already strong management team and opens up new business avenues.”
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 collectively have more than 100 years of experience in natural gas gathering and processing. 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. Caballo is supported with a private equity commitment from EnCap Flatrock Midstream of San Antonio.
About EnCap Flatrock Midstream
Based in San Antonio, EnCap Flatrock Midstream provides value-added private equity capital to proven management teams focusing on midstream energy infrastructure opportunities throughout North America. EnCap Flatrock is led by managing partners William D. Waldrip, William R. Lemmons Jr. and Dennis F. Jaggi. With more than 100 years of midstream experience, the principals at EnCap Flatrock Midstream manage investment commitments of nearly $3 billion from a broad group of prestigious institutional investors. Visit www.efmidstream.com for more information.