El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Field Service Company to Acquire EnCap Investments L.C.
Houston, Texas, March 24, 1999-El Paso Field Services Company, a business unit
of El Paso Energy Corporation (NYSE:EPG), announced today that it has acquired EnCap
Investments L.C. (EnCap) for $52 million in cash and stock. EnCap is one of the
industry's premier institutional funds management firms specializing in financing
independent oil and gas producers. EnCap manages three separate institutional oil and gas
investment funds in the United States, as well as Energy Capital Investment Company PLC, a
publicly traded investment company in the United Kingdom. Commitments to these funds are
currently in excess of $600 million and are provided by fifty United States and European
EnCap, with offices in Houston and Dallas, Texas, was formed in 1988 to provide
non-traditional capital from institutional funding sources to the oil and gas industry.
Since inception, the company has created nine funds with aggregate capital commitments
exceeding $1 billion. EnCap has also closed in excess of $4 billion in oil and gas
financing or advisory transactions, making it one of the leaders in this specialized
field. EnCap principals David Miller, Gary Petersen, Marty Phillips and Bob Zorich will
continue to manage EnCap and its institutional funds and will join the senior management
team of El Paso Field Services.
According to Robert G. Phillips, president of El Paso Field Services, "As one
of the largest gatherers and processors of natural gas in the industry, we are committed
to assisting oil and gas producers in every facet of their businesses to develop and
market new energy supplies. The EnCap acquisition will allow us to expand the portfolio of
services we currently offer to the production community and play a significant role in the
future capitalization of the independent exploration and production segment. Furthermore,
we plan to leverage this financing expertise to support other non-traditional financing
requirements in the energy sector, both domestically and internationally, benefiting El
Paso Energy's fastest-growing businesses."
With over $10 billion in assets, El Paso Energy Corporation provides energy
solutions through five business units: Tennessee Gas Pipeline Company, El PasoNatural
Gas Company, El Paso Field Services Company, El Paso Energy Marketing Company,
and El Paso Energy International Company. The company owns the nation's only
integrated coast-to-coast natural gas pipeline system and has operations in interstate
natural gas transmission, gas gathering and processing, energy marketing, and
international infrastructure development.
This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The companies have made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are current, reasonable,
and complete. However, a variety of factors could cause actual results to differ
materially from the projections, anticipated results or other expectations expressed in
this release. While the companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.