El Paso Picks Up En Cap Investment Firm
El Paso Field Services entered the energy project financing
arena with last week'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. The funds use the capital from their pool of investors to
finance exploration and development projects through direct loans
or equity investments. Commitments to these funds are currently in
excess of $600 million and are provided by fifty United States and
European institutional investors. En Cap has also closed $4 billion
in oil and gas financing or advisory transactions.
En Cap principals David Miller, Gary Petersen, Marty Phillips
and Bob Zorich will continue to manage En Cap and its institutional
funds and will join the senior management team of El Paso Field
"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
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