IPAA / TIPRO Leaders in Industry Luncheon D. Martin Phillips Managing Partner EnCap Investments LL.P. P April 11, 2012
EnCap Overview
Overview of EnCap Investments L.P. Founded in 1988, EnCap is a leading provider of growth capital to the independent sector of the U.S. oil and gas industry Provided growth capital to 190 upstream and midstream companies Exceptional…
EnCap Platforms EnCap invests in oil and gas opportunities through two separate platforms EnCap Energy Capital funds focus primarily on the Upstream side of the Oil & Gas business EnCap Flatrock Midstream specifically targets…
EnCap Growth Timeline Investing 15th institutional fund, EnCap Energy Capital EnCap Energy Fund VIII, with commitments of 3.5 billion Capital Fund VIII Marketing 16th institutional fund, EnCap Flatrock 3,500,000,000 Midstream Fund II…
EnCap Organizational Overview PRINCIPALS UPSTREAM MIDSTREAM INVESTMENT STAFF David Miller Managing Partner INVESTMENT STAFF Gary Petersen Managing Partner Jason DeLorenzo Partner Marty Phillips Managing Partner Dennis Jaggi Managing…
Private Equity Industry 2012 Rankings EnCap ranks 36 on list of total funds raised over the last five years among all private equity providers Private Equity Capital Raised Over Last Five Years ( in Billions) Rank Firm Headquarters…
Energy Focused Private Equity Fundraising Currently, there is 27 billion of private equity fundraising in the market specifically targeting oil and gas investment opportunities Current North American Energy Focused PE Fundraisings…
Investment Focus
EnCap Investment Focus Seek teams with a track record of value creation i.e. Proven Moneymakers Well-defined business plan with viable, creative value creation strategies consistent with experience Mainly pursuing domestic…
What Does EnCap Look For in a Management Team Successful track record Honesty, integrity and forthrightness Strong technical and operational backgrounds Ad t bilit Adaptability Shared view of risk management Receptive to…
Where Do Our Management Teams Come From EnCaps portfolio company management members are largely products of large cap public, public independent and private independent E&P companies 50% of EnCaps current portfolio companies are led by…
Resource Plays Driving EnCaps Recent Investments While actively investing in both conventional and unconventional strategies, the vast majority of EnCaps recent commitments have been to teams focusing on unconventional resource plays…
Compelling Market Factors Confirm Significance of Unconventional Resource Plays Numerous large JV transactions and acquisitions reinforce the desire of the Majors and Internationals to gain exposure to resource plays 100.0 billion of…
Upstream Portfolio Investment Strategies Upstream-focused management teams pursuing two main investment strategies: 1) Lease and Drill E l t Early-stage acreage acquisition i iti Mid-stage low-risk, repeatable drilling…
Upstream Strategies: Early-Stage Entry Acreage acquired in areas where there is known presence of hydrocarbons but economic development is uncertain Extensions of known producing plays Significant data is available from historical…
Upstream Strategies: Mid-Stage Entry Acquire acreage foothold in established play with minimal development risk Significant capital exposed on initial acreage when compared to early-entry strategy Acreage exposure offset by proven…
Upstream Strategies: Buy-and-Exploit While a relatively small number of EnCap companies have pursued a pure buy-and-exploit strategy in recent years due to competitive market dynamics, many companies have grown not only through…
Midstream Portfolio Investment Strategies EnCap Flatrock Midstream investment opportunities center around two strategies: 1) Greenfield Development 2) Acquire-and-Exploit 19
Midstream Strategies: Greenfield Development Identify focus area Typically first or early mover in area with compelling economics and limited existing infrastructure Leverage initial footprint in underdeveloped area by assembling…
Midstream: Acquire-and-Exploit Strategies Acquire existing gathering and/or processing system in area with compelling economics that is: Undersized Old and inefficient Provides insufficient services Management operates, optimizes and…
Recent Activity
Current Portfolio Focus Area Since 2008, EnCap has invested 4.5 billion in the oil and gas industry 49 active portfolio companies operating in some of the most economic and compelling basins in the U.S. Williston International…
EnCap Realizations Since 2008 Financial Crisis Over the same timeframe, EnCap has substantially realized 28 investments totaling in excess of 16.8 billion of transaction value Six of EnCaps p realizations have yielded y over 1.0…
D. Martin Phillips, Managing Partner Houston Office Dallas Office 1100 Louisiana 3811 Turtle Creek Blvd. Suite 4900 Suite 1000 Houston, TX 77002 Dallas, TX 75219 (713) 659 659-6100 6100 (214) 599 599-0800 0800
Loading...
