Energy Finance

A growing amount of private energy-investment capital is flowing into U.S. oil and gas pipeline infrastructure, according to industry insiders.

Recently, Meritage Midstream Services was formed with equity commitments from EnCap Energy Infrastructure Fund and TPH Partners. Meritage Midstream provides gathering, treating and handling of natural gas, crude oil, condensates and water and provides carbon dioxide sequestration.

EnCap Investments LP and Flatrock Energy Advisors LLC partnered to form and manage the EnCap Energy Infrastructure Fund.

Flatrock Energy Advisors exited its midstream advisory practice to partner with EnCap in managing the EnCap Energy Infrastructure Fund. The Flatrock 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.

Quantum Energy Partners is also growing its presence in the midstream space.

“Capital is flowing to midstream to support the growing importance of shale gas,” says David Bole, managing director.

“Even more generalist funds are looking to midstream for reliable investment returns. New demand has given a tailwind to infrastructure. We are seeing higher returns now than we have during the past 5 or 6 years,” Bole says.

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