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ENDICOTT BIOFUELS AND HOLLY CORPORATION PARTNER ON A 30MM GALLON-PER-YEAR BIOREFINERY UNDER CONSTRUCTION IN PORT ARTHUR, TEXAS

noemail@hvllc.com — Tue, 24 May 2011 14:00:00 GMT

Houston, Texas (May 23, 2011) - Endicott Biofuels, LLC (EBF) and Holly Biofuels, a wholly-owned subsidiary of Dallas-based petroleum refiner Holly Corporation (NYSE-HOC), announced today the formation of Sabine Biofuels LLC to partner on a 30 million-gallon-per-year biorefinery currently under construction in Port Arthur, Texas. Sabine Biofuels will employ Davy technology which is proven, patent-protected and licensed to EBF in North America. The Port Arthur facility, using this technology, will convert a full range of inedible, renewable fats or oils in any proportion to high quality biodiesel. This joint venture will assist Holly in meeting its biofuel obligations under the federal Renewable Fuel Standard, said George Damiris, Senior Vice President, Supply and Marketing, of Holly. We are looking forward to our partnership with Endicott on this venture, and possibly others in the future. We are extremely pleased to join forces with Holly on...

IACX Energy Announces Gaseous Helium Sales From Its Proprietary, Small-Scale Processing Unit Near Otis, Kansas

noemail@hvllc.com — Sun, 08 May 2011 00:00:00 GMT

DALLAS, May 7 /PRNewswire/ -- Dallas-based midstream natural gas company, IACX Energy, has commenced operations and sales on what is believed to be the world's smallest, mobile, economically viable helium purification plant for natural gas applications. The plant is located near the community of Otis, Kansas (center of the state), and it is being operated in unison with three IACX nitrogen rejection units (3 MMcf/d -of total inlet capacity). Presently, the plant is polishing approximately 15 to 30Mcf/day of helium which is then compressed to 2,800 psi and stored in high pressure tube trailers for transport. Helium is sold on fixed, 'take-or-pay' contracts and the stated BLM price for crude helium today is $62.25/Mcf. Much of the natural gas produced in this part of Kansas is associated with higher-than-average percentages of helium (1.5% to 2%) which is sourced from deep, basement rock. Helium migrates through the various sedimentary strata and is trapped in the same...

Haddington Ventures Invests in Eureka Resources

noemail@hvllc.com — Tue, 19 Apr 2011 00:00:00 GMT

SOURCE Haddington Ventures, L.L.C. HOUSTON, April 18, 2011 /PRNewswire/ -- Haddington Ventures, L.L.C. and Eureka Resources, LLC, announced today that Haddington has made a strategic investment in Eureka, a wastewater treatment company based in Williamsport, Pennsylvania. The investment was made through Haddington Energy Partners IV LP, a private equity fund managed by Haddington. Eureka Resources provides cost-effective wastewater treatment and disposal solutions that reduce the environmental impact of natural gas drilling in the Marcellus Shale. The Company plans to use the capital to further develop and expand its business, including assuming full ownership and operation of three vapor distillation (NOMAD) units that were previously under lease from Aqua-Pure Ventures, Inc. (AQE-TSXV). In addition, Eureka will have certain areas of northeastern Pennsylvania as its exclusive territory for deployment of Aqua-Pure's NOMAD technology. Eureka Resources is playing an...

Magnum Gas Storage Accepts FERC 7 (c) Certificate

noemail@hvllc.com — Thu, 24 Mar 2011 00:00:00 GMT

MAGNUM GAS STORAGE ACCEPTS FERC 7(c) CERTIFICATE Salt Lake City, Utah (March 23, 2011) - Magnum Gas Storage, LLC, announced today that it has accepted the certificate of public convenience and necessity issued recently by the Federal Energy Regulatory Commission (FERC) under section 7(c) of the Natural Gas Act and Part 157 of FERC's regulations, authorizing construction and operation of Magnum's high- performance natural gas storage facility in central Utah. The facility marks an important first step in Magnum's plan to develop an integrated gas/electric energy hub that will add reliability and efficiency to existing regional infrastructure and enable development of intermittent, renewable power generation throughout the Rockies. With excellent access to both the natural gas and electric grids in the West, the Magnum project is located in Millard County, north of Delta, directly adjacent to the 1800-megawatt Intermountain Power Project. The FERC 7(c) permit authorizes...

Haddington Ventures Enters Into Agreement to Purchase Continental Gas Storage Deutschland

noemail@hvllc.com — Thu, 10 Feb 2011 01:00:00 GMT

HOUSTON, Feb. 9, 2011 /PRNewswire/ -- Haddington Ventures, L.L.C. announced today that it has entered into an exclusive agreement with Continental Gas Storage BV (CGS) to purchase that Company's wholly-owned subsidiary, Continental Gas Storage Deutschland GmbH (CGSD), through Haddington Energy Partners IV LP, a private equity fund managed by Haddington. The proposed transaction is subject to further due diligence by Haddington and is expected to close by mid-year 2011. Once closed, the transaction will enable the continued development and construction of CGS's Epe Underground Natural Gas Storage project, located in Germany. Haddington is a leading private equity firm, active in the midstream energy business sector. The Fund generally makes control-oriented investments in companies focused on gathering, separation, processing, treating, compression, storage, and transmission of oil and natural gas. Haddington is a truly unique organization as a midstream energy fund...

Endicott Biofuels LLC to construct 30-million gallon-per-year second-generation biorefinery at KMTEX Ltd. facility in Port Arthur, Texas

noemail@hvllc.com — Tue, 25 Jan 2011 01:00:00 GMT

Houston, Texas (January 24, 2011) - Endicott Biofuels, LLC (EBF) has signed an agreement with KMTEX Ltd. (KMTEX) to construct a 30-million gallon-per-year biorefinery in Port Arthur, Texas, that will employ EBF's proprietary technology for the production of high-purity G2 Clear™ biodiesel. KMTEX will host EBF as well as provide certain construction and operational services. Equity funding will come from Haddington Ventures, LLC, and construction is expected to begin in late January 2011. Our extensive specialty chemical processing capabilities in Port Arthur are well-suited to complement Endicott's unique production of biodiesel, said Artie McFerrin, President of KMTEX. We are excited to begin this fruitful long-term relationship. G2 Clear is Endicott's high-purity, high-quality biodiesel made from waste fats, oils and greases. This patent-protected process is capable of consuming any waste fat or oil in any proportion. EBF will use inedible feedstocks to help the U.S....

IACX Energy Designs and Operates the World's First Mobile Nitrogen Rejection Unit for Nitrogen Frac Flow-Back Applications

noemail@hvllc.com — Sat, 11 Dec 2010 01:00:00 GMT

DALLAS, Dec. 16, 2010 /PRNewswire/ -- IACX Energy has designed, built and deployed the world's first trailer mounted nitrogen rejection unit (Nitrogen Sponge) for nitrogen frac flow-back applications, among other things. This first unit was deployed to a recently frac'ed EQT Corporation Huron Shale well in eastern Kentucky (Pittsburgh based, EQT is among the largest exploration and production companies in the U.S. Appalachia region). The mobile Nitrogen Sponge unit is comprised of five trailers and, when positioned on site, measures 158 feet by 38 feet. (Photo: http://photos.prnewswire.com/prnh/20101216/LA18611) In certain shale basins of the United States (such as the Huron), enormous quantities of nitrogen gas are forced at high pressure into the reservoir to create the necessary permeability for prolonged natural gas production. In eastern Kentucky, the lower pressured Huron Shale has responded especially well to nitrogen fracturing treatment, and the continued...

Tristream Energy Announces Acquisition of East Texas Processing Assets

noemail@hvllc.com — Thu, 29 Jul 2010 14:00:00 GMT

HOUSTON (July 29, 2010) - Tristream Energy, LLC announced today that it acquired the East Texas gathering and processing assets of a subsidiary of Dallas-based Regency Energy Partners LP on July 15, 2010. The acquired assets include gas treating and processing facilities in Eustace, Texas, a condensate sweetening plant in Myrtle Springs, Texas, and approximately 371 miles of gathering pipeline. The assets are primarily located in Henderson, Van Zandt, Rains, Wood, Hopkins, and Franklin counties, Texas. The acquisition of the Eustace facilities will expand our midstream gas gathering business in Texas, said Ken Purgason, president and chief executive officer of Tristream Energy. We look forward to the aggressive addition of new reserves to the system and continuing our acquisition and grass roots development opportunities in the midstream gas sector. The Eustace Gas Plant is a state of the art gas treating and processing facility. It consists...

HADDINGTON SELLS BOBCAT GAS STORAGE ASSETS AND DEVELOPMENT PROJECT TO SPECTRA ENERGY

noemail@hvllc.com — Thu, 15 Jul 2010 21:00:00 GMT

Houston, Texas (July 15, 2010) - Haddington Ventures, L.L.C., announced today that it has entered into a definitive agreement to sell the Bobcat Gas Storage assets and development project to Spectra Energy Corp. (NYSE: SE), for $540 million. The Bobcat Gas Storage Project was developed by Port Barre Investments, LLC, which is owned by members of management, Haddington Energy Partners III LP, a private equity fund managed by Haddington Ventures, LLC, and GE Energy Financial Services, the energy investing unit of GE (NYSE: GE). Located in Port Barre, Louisiana, the project began development in 2006 and entered commercial operation in November 2008. Following the addition of a second cavern in 2009, the facility has working gas storage capacity of approximately 19 billion cubic feet. The Bobcat project exemplifies Haddington's strategy to acquire, develop and eventually exit midstream energy projects, said Haddington Managing Director J....

Magnum Gas Storage Application Accepted by FERC for Construction of a High-Deliverability Salt Cavern Storage Facility in Central Utah

noemail@hvllc.com — Wed, 16 Dec 2009 15:00:00 GMT

SALT LAKE CITY, Dec. 16, 2009 -- Magnum Gas Storage, LLC, announced today that the Federal Energy Regulatory Commission (FERC) has accepted its application to construct and operate a high-deliverability, multi-cycle salt cavern natural gas storage facility in central Utah under Section 7(c) of the Natural Gas Act. The proposed project is the first large-scale, underground natural gas storage facility to be developed in the Western United States. It is designed as a fully-integrated project that will increase efficiency, reliability and competitiveness of energy markets throughout the West. When completed, the facility will consist of four salt caverns with a combined total working gas storage capacity of 42 billion cubic feet (Bcf). The project will be capable of injecting up to 0.3 Bcf of gas per day and withdrawing up to 0.5 Bcf per day and of cycling its inventory from nine to 12 times annually. The project also includes a 61.5-mile, 36-inch header pipeline that will extend to...

Continental Gas Storage

Mon, 13 Feb 2012 19:26:19 GMT

Investment Entity: Continental Gas Storage, GmbH
Geography: Northern Germany
Sector: Natural Gas Storage
Investment Fund: Fund IV

Initial Investment: December 2010

As Haddington looked to uncover opportunities to develop natural gas storage, the management team developing Continental Gas Storage in Epe, Germany approached Haddington about a potential investment. After extensive study, Haddington determined that the regulatory changes in Europe, directed by the European Union, provide opportunities for independent development of new natural gas storage assets there. Northwestern Europe is significantly short storage, with only 13% of annual gas consumption in gas storage capacity, versus 19% in the United States.

Haddington is currently conducting additional due diligence on the investment and expects to close an investment by early 2012.

More information is available at www.continentalgasstorage.com

Proven Track Record

Sun, 15 May 2011 18:35:31 GMT

In total, the Haddington team has over 160 years of combined experience in the midstream energy sector. The Principals believe their experience represents a significant competitive advantage relative to many of their competitors and enables them to pursue a much broader set of opportunities within the midstream sector.

Managing Directors J. Chris Jones, and M. Scott Jones, and John A. Strom, completed over $175 million of midstream acquisitions and developed another $226 million of midstream assets while at TPC Corporation, the predecessor to Haddington Ventures. They then took that experience and successfully applied it to investing private capital in midstream.

Key Strengths

Sun, 15 May 2011 18:33:30 GMT

Haddington believes that its key strengths will allow the Fund to capitalize on the attractive investment opportunities that currently exist to acquire or develop midstream energy assets. Some strengths that Haddington brings to its portfolio companies are:

Strategic Vision – Demonstrated ability to identify attractive opportunities within the midstream energy sector based on over 140 years of combined sector experience.

Management Focus – Hands-on approach offering portfolio company management teams a wealth of experience in all aspects of the midstream energy sector.

Regulatory Knowledge – Deep understanding of regulated businesses, competitive markets and the dynamics of transitioning from a highly regulated market to a more competitive market.

Technical Expertise – Extensive experience in the application of technology within the energy industry and access to a vast network of technologists at the U.S. National Laboratories, universities and the European natural gas research community.

Energy Industry Relationships – Network of relationships throughout all areas of the energy sector, including energy merchants, oil and gas producers, pipeline operators, utilities, independent project developers and federal and state regulators.

Financing Capabilities – Experience in arranging financing for portfolio companies and individual projects from a variety of sources, including public and private equity markets, public and private debt markets, and bank debt markets, as well as non-recourse project financings.

In addition, the Haddington Advisory Board will assist in identifying macroeconomic trends in the industry, conducting due diligence on specific opportunities, recruiting management for portfolio companies and sourcing transactions.

Core Principles

Sun, 15 May 2011 18:24:16 GMT

Investment success starts and stops with people.

Thorough evaluation of management team is required, both individually and as a team.
Poorly constructed teams can jeopardize an otherwise potentially successful investment.
Personal investment, “skin the game,” is required for alignment of incentives, including Haddington team and management teams.

Different stages of acquisition and development have different risks and costs of capital, plan investment and exit accordingly.

When entering a deal, contemplate “off ramps” at each stage where a lower cost of capital investor might enter and Haddington might partially or fully exit.
For each type of transaction assess the amount of capital required for each task and the risk associated with each task.
Initially, and then throughout the investment stages, systematically stage capital investment to reduce investment risk.

Haddington’s Principals’ and Management Teams' operating experience drives success.

Haddington looks where others don’t, in both acquisition and development, because of the team's operating experience in development.
Frequent and in-depth interaction with management allows transfer of the Haddington’s over 140 years of experience in both successful operating and marketing strategies and decision making “pitfalls.”
Management teams, banks and equity partners recognize Haddington’s operational expertise, allowing Haddington control in otherwise equal equity positions, leverage in difficult markets, and superior deal sourcing and closing opportunities.

Midstream Overview

Sun, 15 May 2011 18:20:56 GMT

The U.S. Energy Information Administration is predicting that U.S. energy consumption will continue to increase. As energy consumption increases, it is expected that natural gas will be an increasingly important component of U.S. energy consumption, for both environmental and operational reasons. This growth in demand for natural gas is driving the need for additional investment in the midstream sector, specifically:

the need for new midstream assets because of demand, and
the continuing development of new energy resources.

Utilization of renewable energy is expected to further increase the need for midstream investment:

Renewable energy generation (especially wind) is volatile and difficult to predict.
The timing of peak demand for energy differs from the timing of peak production.

Increasing penetration of such renewable energy sources is increasing fluctuation in demand for gas-fired electricity. To utilize more of this renewable generation, and to manage these fluctuations in demand for gas-fired power, we see:

increased natural gas storage and transport capacity is necessary, and
opportunity for development of bulk electricity storage infrastructure using compressed air energy storage (“CAES”).

Our Strategy - Overview

Sun, 15 May 2011 18:18:02 GMT

Haddington’s objective is to generate attractive long-term returns for its limited partners. Those limited partners include corporate and teachers' pension plans, educational and health care endowments, insurance companies and other investors seeking private investments in midstream energy companies. In particular, we seek to generate an internal rate of return for the limited partners of between 20-25% (net of management fees and the general partner’s carried interest).

Haddington concentrates its investment efforts on areas that will benefit from the Principals midstream expertise:

Gathering and separation
Processing, treating and compression
Storage
Pipelines

Haddington generally will target control investments and pursue transactions that require equity investments of $20-$50 million with an enterprise value of up to $150 million.

Environmental Impact

Sun, 15 May 2011 18:17:11 GMT

Haddington takes pride in the environmental performance of the midstream energy assets developed and built by its portfolio companies. Apex CAES is developing compressed air energy storage solutions to support the integration of variable renewable resources at high penetration rates. Endicott Biofuels is building world-class biorefineries with the goal of adding to the domestic supply of economically renewable transportation fuel. Endicott expects its products to be cost competitive with petroleum based fuels. Eureka Resources is providing distillation services to Marcellus Shale natural gas producers, allowing 75-80% recovery of drinking quality, distilled water from produced frac water for re-use. IACX's innovative mobile nitrogen rejection unit allows natural gas drillers using nitrogen fracs to treat the initial flows of natural gas and send that gas to pipelines, rather than release the methane to the atmosphere or flare...

Investment Funds

Sun, 15 May 2011 18:10:20 GMT

Fund I
Haddington has invested the total capital committed to Fund I of $77 million across seven portfolio companies. Fund I is fully realized.

Fund II
Fund II initially had total capital commitments of $147 million. However, one significant partner, due to strategic reasons, exercised its right to pass on $75 million of its $100 million of commitments early in the life of Fund II. Haddington has invested the $72 million of total remaining capital committed to Fund II across five portfolio companies. Fund II currently has one remaining investment yet to be monetized.

Fund III
Haddington closed Fund III in May 2006 with total capital commitments of $182 million. Fund III is fully invested with four active portfolio companies and one realized investment.

Fund IV

Haddington is currently investing Haddington Energy Partners IV, with a targeted fund size of $250 million. As such, Haddington is actively searching for midstream investment opportunities with strong experienced management teams. Areas of focus include natural gas and liquids pipelines, gathering, processing, and treating facilities, and gas storage.

Haddington Ventures Team

Sun, 15 May 2011 17:55:34 GMT

Haddington is unique in that it is the only midstream energy fund in which all principals have substantial direct operating experience. The Haddington principals have over 160 years of combined experience in the midstream energy sector. The Principals bring complementary disciplines to the Fund, including engineering, managerial, marketing, corporate finance, accounting and legal expertise, and collectively possess a comprehensive understanding of the landscape of U.S. midstream assets, as well as sector trends, key technologies and regulatory issues.

Haddington believes our experience represents a significant competitive advantage relative to many of their competitors and enables them to pursue a much broader set of opportunities within the midstream sector.

Haddington Energy Partners Funds

Sun, 15 May 2011 17:50:53 GMT

Haddington Ventures, through its private equity funds, provides superior returns to its partners and investors by focusing on the midstream energy sector. Haddington Energy Partners funds represent over $400 million in assets under management since formation in 1998. Haddington will generally make control-oriented investments in companies focused on gathering, separation, processing, treating, compression, storage, and transmission.

Haddington is unique in that it is the only midstream energy fund manager in which all principals have substantial direct operating experience. As such, the Fund is capable of investing in both growth by acquisitions companies and greenfield development companies. This capability allows Haddington to capitalize on current market conditions in the midstream sector.