In 2011, natural gas and mid-stream services company Caballo Energy acquired Eagle Chief Midstream, who is the owner of more than 600 miles of natural gas pipelines, compression and processing assets in northwestern Oklahoma. Since then, there was been several major additions to the Eagle Chief system and it continues to grow today.
Headquartered in Tulsa, Okalahoma, Caballo Energy was formed to acquire, develop and manage natural gas gathering, compression, treating, processing, and marketing assets such as Eagle Chief. The members of Caballo’s senior management team have a combined 100 years of experience in natural gas gathering and processing, allowing them to make intelligent purchases, such as Eagle Chief.
Connected to more than 370 wells and serving 25 producers, The Eagle Chief assets are strategically located at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays.
“The Mississippi Lime and Cana Woodford Shale are two of the most exciting plays in the country,” Dennis Jaggi, one of EnCap Flatrock Midstream’s three managing partners and a member of Caballo Energy’s board of managers, said. “We’re seeing a surge in drilling activity in northwestern Oklahoma in the Mississippi Lime formation. This is a great acquisition in an underserved region with very strong demand for gathering, compression and processing services. Acquisition of Eagle Chief will enable Caballo Energy to grow as demand accelerates. We look forward to working with producers to improve their economics by providing effective service and multiple options for moving gas and crude to market.”
The Carmen Gas Processing Plant in Alfalfa County, Oklahoma is designed to help provide this better service to Caballo’s customers. Coming online in 2013, the plant has a processing capacity of 60 million cubic feet of natural gas per day (MMcf/d) and brings the total processing capacity in the region to around 100 MMcf/d.
“Bringing the Carmen plant online is an exciting step forward as we continue to expand the Eagle Chief system,” Caballo President and CEO Bob Firth said. “Horizontal drilling has brought a boom to northwestern Oklahoma. There is a great deal of drilling activity focused on the liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations. We believe the region has significant potential for future growth, particularly to the east and into Kansas. We are excited to be part of this growth and provide the processing capabilities our customers need.”
Other assets include the Magic Circle Oil and water Gathering System located in southern Woods and Alfalfa counties. This system includes a crude oil gathering system and a saltwater disposal system, as well as commercial disposal well. It also has current on-system wells for natural gas, crude and saltwater which target the Mississippi Lime and Cana-Woodford Shale formations, as well as the Anadarko, Chester, Hunton and Manning formations.
Of course, efficient and smooth operations are part of Caballo’s continued success with Eagle Chief. Work is completed on time and on budget, utilizing the large group of suppliers and service providers to their advantage. The company believes in building plants the right way the first time so they’re easy to maintain and have a feasible operating cost.
Currently, Eagle Chief is laying an 8 inch line to connect additional gas from the north end of their system. This line will increase the flexibility of the pipeline and plants, allowing Eagle Chief an avenue for future growth—something the company is always focused on.
Caballo’s efforts are currently focused in Texas, Oklhahoma, and Kansas, but it looking to find opportunities in emerging shale plays.