By Dallas Business Journal

Private equity-backed pipeline company Caiman Energy LLC has lined up an additional $400 million to expand its buildout in the Marcellus Shale.

Dallas-based Caiman Energy is led by veterans of Texas pipeline companies CrossTex Energy and Regency Energy Partners. Its financial backers at EnCap Investments LP and Flatrock Energy Advisors have a history of investing in Texas pipeline and production companies.

So when Caiman was first funded in early 2009, everyone involved looked first at doing business in Texas, said Jack Lafield, president and CEO of Caiman Energy.

⿿Our experience was go where you know,⿝ he said. That had Caiman focusing on South Texas⿿ Eagle Ford Shale and the Haynesville Shale covering North Louisiana and East Texas.

A former production company put the Marcellus Shale in West Virginia and Pennsylvania on the map for Caiman.

⿿We basically had a producer we⿿ve done business with for 25 years, say we need somebody like you guys to come to the Marcellus,⿝ Lafield said. ⿿After 30 days of diligence, we said, ⿿Wow, this is a great opportunity.⿿⿝

Caiman has 30 miles of natural gas gathering lines in West Virginia and related processing facilities. It has another 75 miles of gathering lines under construction and plans to build a processing plant and terminal for natural gas liquids.

Copyright 2010 American City Business Journals
Copyright 2010