Global Infrastructure Partners Capital Solutions Fund today announced it has made a preferred equity investment of up to $250 million in Caprock Midstream. Caprock, founded in 2015 through a partnership with Energy Spectrum Partners VII, LP, is focused on the economically attractive Delaware Basin in the Permian Basin, where a significant increase in production is continuing to drive growth of midstream infrastructure.
Proceeds from the investment, together with Caprock’s senior secured term loan facility and additional common equity from Energy Spectrum, will be used to fund the continued build-out of Caprock’s Delaware Basin natural gas gathering and processing assets. Since its formation, Caprock has developed and acquired an asset base consisting of natural gas gathering and processing, crude oil gathering, and water gathering and disposal assets. Caprock is led by a management team with an average of over 28 years of energy sector experience and Energy Spectrum, a leading energy-focused private equity sponsor.
”We are pleased with the opportunity to broaden our relationship with GIP, an experienced and successful investor in the midstream sector,” Mike Forbau, CEO of Caprice Midstream, said. “This growth capital will be used to continue building out our oil gathering system and commit to our 3rd processing train which will bring our capacity at Pecos Bend Gas Plant to 340 MMCFD.”