Caiman secures $800M in equity commitments for Utica Shale infrastructure

Caiman Energy

Caiman Energy II LLC has secured $800 million in equity commitments for the development of midstream infrastructure in Ohio and Pennsylvania’s Utica Shale. Funding for Caiman’s initiatives in the Utica and other potential regions will be provided by Williams Partners, EnCap Flatrock Midstream of San Antonio, Highstar Capital of New York, and management. 

Caiman Energy was founded in 2009 and backed with equity commitments from EnCap Flatrock Midstream, EnCap Investments LP and Highstar Capital. From 2009 through the first quarter of 2012, Caiman focused its operations in the liquids-rich region of the Marcellus Shale where the company built a sizable rich gas system. In April 2012, Caiman sold its wholly owned subsidiary, Caiman Eastern Midstream LLC, substantially all of its Marcellus assets, to Williams Partners for approximately $2.5 billion. The acquisition established Williams Partners’ Ohio Valley Midstream system. Williams Partners expects significant growth in gathering volumes and NGL production.

“We're very proud of the expansive system we built in the Marcellus and the great relationships Caiman developed with producers and the people of West Virginia. We look forward to continuing our work in new regions, especially the Utica Shale. The development of this vast, liquids-rich resource will require similar midstream infrastructure as we built out in the Marcellus,” said Jack Lafield, Caiman’s chairman and CEO.

“With this new venture, we can leverage the commercial relationships and success of Caiman’s management and investors, along with Williams Partners’ long experience in successfully constructing and reliably operating large-scale midstream infrastructure,” said Alan Armstrong, chief executive officer of Williams Partners’ general partner.

“The Utica is one of the most exciting plays in the country, and Caiman has an outstanding team in place that has already proven itself in the Marcellus, where they had remarkable results for their producer customers, the people of the region and our investors,” said William R. Lemmons Jr., one of EnCap Flatrock’s three managing partners and a member of Caiman Energy’s board of directors.

Management team
Caiman Energy also announced five significant promotions and two additions to the company’s senior management team. Caiman’s founder, Jack Lafield will continue as Caiman’s chairman and CEO. Richard D. Moncrief has assumed the role of president of the company and will remain its COO. Stephen L. Arata has been promoted to executive vice president and will continue to serve as CFO. Tony Strehlow, Caiman’s chief accounting officer, has also been promoted to senior vice president.

Scott Williams has been named senior vice president of commercial development and Daniel Wentworth has been promoted to senior vice president of engineering and operations.  A new addition to Caiman Energy’s management team, Williams has 35 years of energy industry experience. Prior to joining Caiman, he served as the president of TPF Gas Services .

Daniel Wentworth’s 12 years of energy experience has been focused on business development, engineering design, construction, gas gathering and processing operations.  He joined Caiman Energy in 2010 as director of engineering and later served as vice president of engineering.  Prior to Caiman, Wentworth worked for Regency Energy Partners.

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