A team of industry veterans launched on April 21 a new independent midstream company with $300 million in funding from EnCap Flatrock Midstream aimed at aggressively pursuing a “hybrid strategy” focused on natural gas and carbon capture.
“We believe that clean burning natural gas will continue to play an important role in the energy mix, driving global demand, upstream production and accompanying midstream infrastructure,” Doug Dormer, CEO of Dallas-based Cardinal Midstream Partners, commented in a company release.
Founded in 2022, Cardinal is focused on the pursuit of midstream acquisition and development opportunities across North America, specifically natural gas gathering and processing and congruent carbon capture and sequestration.
“We look forward to being part of the energy solution, aggressively pursuing a hybrid strategy focused on natural gas gathering and processing, and carbon capture and sequestration,” Dormer added.
Cardinal is financially partnered with EnCap Flatrock Midstream, which provided the company with an initial capital commitment of $300 million, according to the release.
“EnCap Flatrock has been a trusted and valued partner to me for over a decade and I am excited to continue as we work together to grow Cardinal Midstream Partners,” Dormer said.
Dormer previously worked with EnCap Flatrock on previous ventures, which were also named Cardinal Midstream but now operate as Iron Horse Midstream.
“We are excited to continue our longstanding relationship with Doug Dormer and partner with Cardinal Midstream Partners,” Billy Lemmons, EnCap Flatrock managing partner, commented in the April 21 release.
“Doug has assembled a world class team who have deep industry relationships and outstanding reputations in the energy industry,” Lemmons added. “The company’s strategy and focus provide a solid platform, well positioned for growth and value creation.”
In addition to Dormer, the Cardinal leadership team includes CFO Douglas Gale, Chief Commercial Officer Justin Garrity and COO Clayton Hewett. Together, the four founders have more than 80 years of combined experience in the energy industry, each with notable careers creating, managing, constructing, and operating successful midstream businesses through full life cycle, the release said.
Cardinal was advised by Akin Gump Strauss Hauer & Feld LLP, led by partner Wesley P. Williams. Sarah E. McClean, partner with Sherman & Sterling LLC acted as legal counsel to EnCap Flatrock.
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