News

• Plant serves Mississippi Lime and Cana Woodford shale plays
• Caballo’s regional processing capacity is approximately 100 MMcf/d
• Carmen Plant starts up at 80 percent of its capacity

TULSA – May 23, 2013 - Caballo Energy, LLC (“Caballo”) announced today that the company’s Carmen Gas Processing Plant in Alfalfa County, Okla., is now online. The new cryogenic processing plant has the capacity to process 60 million cubic feet of natural gas per day (MMcf/d) bringing Caballo’s total processing capacity in the region to approximately 100 MMcf/d. 

The Carmen plant serves expanding natural gas production in the liquids-rich Mississippi Lime and Cana Woodford shale plays. Long-term dedications to the Carmen facility total more than 125,000 acres. The plant is currently operating at 80 percent of its total capacity.

The Carmen plant is strategically located near Carmen, Okla., at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays. Caballo is evaluating the addition of a second cryogenic processing plant at the 160-acre site. The additional plant would give Caballo 220 MMcf/d in processing capacity at the Carmen location as early as June 2014. 

The new Carmen plant and Caballo’s existing Eagle Chief plant also in Alfalfa County 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.

CEO Perspective
“Bringing the Carmen plant online is an exciting step forward as we continue to expand the Eagle Chief system,” said Caballo President and CEO Bob Firth. “Horizontal drilling has brought a boom to  northwestern Oklahoma. There is a great deal of drilling activity focused on the liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations. We believe the region has significant potential for future growth, particularly to the east and into Kansas. We are excited to be part of this growth and provide the processing capabilities our customers need.”

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
EnCap Flatrock Midstream provides value-added private equity capital to proven management teams focusing on midstream infrastructure opportunities across North America. Founded in 2008 by EnCap Investments L.P. and Flatrock Energy Advisors, the firm is based in San Antonio and 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 manage a dedicated professional staff and midstream-focused investment commitments of nearly $3 billion from a broad group of prestigious institutional investors. EnCap Flatrock is currently investing out of EnCap Flatrock Midstream Fund II, a $1.75 billion fund. Visit www.efmidstream.com for more information.