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El Paso Expands Services by Buying En Cap

El Paso Expands Services by Buying En Cap

El Paso Field Services entered the energy project financing arena with Wednesday's purchase of En Cap Investment Co. for $52 million in cash and stock. Robert Phillips, El Paso Field Services' president, said all regulatory issues have been settled and the deal will be accretive to El Paso's earnings beginning April 1.

"This is far from our core business," Phillips said. "But we wanted producers to know that if they have a big exploration project in mind, El Paso can help them out in many aspects."

The Texas-based investment company, with offices in Houston and Dallas, was formed in 1988 and has created nine oil & gas investment funds with aggregate capital commitments exceeding $1 billion. It has also closed $4 billion in oil and gas financing or advisory transactions. Commitments to these funds are currently in excess of $600 million and are provided by fifty United States and European institutional investors. 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.

"We're going to let En Cap run itself as a stand-alone company," Phillips said. "We are interested in the investors making good investments and we are not going to put El Paso's needs before the investors."

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