A Houston pipeline and storage company received a $200 million equity commitment from a San Antonio energy investment firm.
Candor Midstream, LLC, which was formed in 2017, on Tuesday announced the investment by EnCap Flatrock Midstream. The investment firm has a history of making investments in start-up oil and gas companies.
Candor Midstream is led by President and CEO Darrel Hagerman, a former executive with Crestwood Midstream Partners LP and Enbridge. The money could be used to acquire existing assets or to start new projects.
EnCap Flatrock Midstream was involved in funding two Houston energy firms that spent $2.6 billion on assets owned by oil giant Occidental Petroleum. The oil and gas explorer, also known as Oxy, sold its crude oil export Ingleside Energy Center Terminal to Moda Midstream and its Centurion pipeline system from West Texas to Cushing, Okla. to Lotus Midstream. Both privately held companies are backed by EnCap Flatrock Midstream.
The sales came as Occidental was expanding its Ingleside export terminal to handle greater volumes. But the company has been increasingly focused on oil and gas production in West Texas’ Permian Basin oil field, and has been selling its other assets in recent years.
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