Lucid Energy Group Forms with $75 Million Equity Commitment from EnCap Flatrock Midstream

Lucid Energy Group

DALLAS – Feb. 8, 2012 - Lucid Energy Group, LLC announced today that the company has secured a $75 million equity commitment from EnCap Flatrock Midstream.  Lucid Energy Group is a startup midstream company that provides oil and natural gas producers with a full range of midstream services, including crude oil and natural gas gathering, gas compression, treating, processing and transmission.  The company will pursue greenfield initiatives and acquisitions in conventional and unconventional resource basins across the country with a particular emphasis on the Mid-Continent region.

Lucid’s management team is led by company President Michael J. Latchem; Chief Financial Officer W. Kyle Bebee; and Chief Operating Officer Jay L. Langham. Prior to the formation of Lucid Energy Group, Mr. Latchem served as president of TPF Gas Services, LLC. Previously, he was vice president of business development at Crosstex Energy (NASDAQ: XTEX), where he also served in various managerial roles in business development, engineering and operations. While at TPF and Crosstex, Mr. Latchem was directly responsible for more than $500 million of organic growth projects in unconventional shale producing regions. Mr. Bebee has broad experience in private equity and bank finance, deal origination and structuring, and risk management. His recent track record includes more than 30 transactions in excess of $1.4 billion. Mr. Langham's energy experience includes engineering design, construction and operation of natural gas gathering, treating and processing facilities and liquids handling and storage facilities. Immediately prior to forming Lucid Energy Group, Mr. Langham served as vice president of engineering and operations for TPF Gas Services.

“Lucid is led by a team of outstanding executives with proven experience in developing creative solutions for their customers in natural gas gathering, processing and project development,” Mr. Latchem said.   “We’re excited about the common vision that we share with EnCap Flatrock Midstream.  Considering the depth of experience of both teams, Lucid can and will be acutely responsive to producers in the resource plays where we’re focused.”

“We are very excited about taking this first step in our partnership with Lucid Energy Group,” said Bill Waldrip, managing partner at EnCap Flatrock Midstream.  “Our team has a long history with the senior leadership at Lucid. We welcome their innovative approach to structuring deals and finding creative new solution sets in the midstream service sector.  We’re confident their industry relationships will lead to long-term project opportunities that will benefit Lucid and its customers,” added Waldrip.

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. Visit for more information.

EnCap Investments L.P. is the nation’s leading source of private equity to the independent sector of the U.S. oil and gas industry. The firm has raised 15 institutional oil and gas investment funds totaling approximately $11 billion and currently manages capital on behalf of over 200 U.S. and international investors. Over the past 23 years the firm has provided growth capital to more than 180 upstream and midstream oil and gas companies.  Visit for more information.