Candor Midstream has secured an initial venture capital commitment of $200m from EnCap Flatrock Midstream to pursue organic, greenfield projects and select acquisition opportunities in North America.
The Texas-based energy company is engaged in the development of midstream infrastructure in North America.
It provides customized midstream solutions such as gas gathering, processing and treating, crude oil gathering, terminaling and logistics, in addition to produced water gathering.
The management team of Candor Midstream is made up of industry professionals with a track record of value creation at companies such as Crestwood Midstream Partners, Enbridge, ONEOK and Delhi Gas Pipeline.
Candor Midstream president and CEO Darrel Hagerman said: “We have a tremendous amount of experience and understand that every producer has unique needs. We spend a lot of time meeting face-to-face in our customers’ offices and getting our hands dirty out in the field, where we work alongside producers to get a first-hand look at their challenges and opportunities.
“We think that’s the best way to really get to know our customers and develop effective midstream solutions that start at the wellhead.”
EnCap Flatrock Midstream, on the other hand, is a venture capital firm based in San Antonio that invests in businesses and assets in the North American oil and gas midstream sector.
EnCap Flatrock Midstream managing partner and founder Bill Waldrip said: “We are very pleased to welcome Darrel and the rest of the Candor Midstream team to the EnCap Flatrock family.
“Producers across the country know and trust the Candor team and genuinely enjoy working with them. That’s a huge asset. We look forward to helping them grow a very successful company.”
Established in 2008 by Flatrock Energy Advisors and EnCap Investments, EnCap Flatrock Midstream handles the EnCap Flatrock Midstream Funds I, II, III and IV, which together have close to $9bn in capital commitments from various institutional investors.
In late March, EnCap Flatrock Midstream announced a $250m capital commitment to Getka Energy, a crude oil logistics provider based in Tulsa.