HVLLC

Endicott Biofuels, LLC

Wed, 16 Jul 2008 20:25:08 GMT

Investment Entity: Endicott Biofuels, LLC Geography: Louisiana Sector: Alternative Energy Investment Fund: Fund III Initial Investment: June 2007 In December 2007, the Energy Independence and Security Act of 2007 was signed into law, creating a renewable fuels mandate of 36 billion gallons by 2022. With oil prices trending higher, the economic incentives are strong to find new sources of domestic renewable energy, which reduce dependency on foreign oil and reduce the U.S. carbon footprint. With an energy balance much more favorable than that of ethanol, Haddington views biodiesel as an attractive long term component of the U.S. domestic fuel industry. Endicott is engaged in building a world class manufacturing enterprise and plans are underway to build, construct, and operate multiple biodiesel plants throughout the United States. After an extensive review of available technology and taking into account the feedstock preferences and potential overbuilding of the current...

Active Investments

Wed, 16 Jul 2008 20:17:47 GMT

CAES Development Company - Electric Storage / Power Gen

Gulf Coast LNG, LP - LNG Re-gasification

IACX Energy, LLC - Nitrogen Rejection and Gas Gathering

Port Barre Investments, LLC - Gas Storage

Tristream Energy, LLC - Gas & Oil Gathering, Processing, and Transport

Endicott Biofuels, LLC - Biodiesel Production

Proven Track Record

Wed, 27 Feb 2008 17:22:28 GMT

In total, the Principals have over 100 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. In particular, the Principals believe they are well positioned either to buy or build midstream assets. It is important to note that this buy and/or build strategy is very consistent with their historical experience. The TPC Principals, J. Chris Jones, and John A. Strom, completed over $175 million of midstream acquisitions and developed another $226 million of midstream assets. The TPC Principals generated a 65% IRR and a 5.9x multiple of investment to the original venture capital investors and an average 34.0% IRR across all rounds of equity raised by TPC in its 13 year operating history.

Haddington Ventures Team

Wed, 27 Feb 2008 17:18:05 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, J. Chris Jones, M. Scott Jones, John A. Strom and Jim P. Wise (collectively, the Principals), have over 100 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. 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. In managing the Fund, the Principals will target situations in which they can use their operating experience to purchase smaller,...

Sam H. Pyne

Wed, 27 Feb 2008 17:05:20 GMT

Sam H. Pyne - joined Haddington in January 2007 as an Associate, to assist with the evaluation and execution of new investment opportunities, macro level industry analysis, and ongoing portfolio company initiatives.

Prior to joining Haddington, Sam worked as an associate analyst at Howard Weil, Inc where he performed in-depth industry and company analysis across the midstream, MLP, and power sectors. Prior to Howard Weil, Sam worked in several engineering and operational roles. From 1996 until 1999, Sam worked as a process engineer at a Lyondell petrochemical facility. In 1999, Sam co-founded an Internet technology company and successfully sold the company in mid-2000. In 2001, Sam helped found another ongoing venture funded startup where he worked until 2003.

Sam is a Summa Cum Laude graduate from Tufts University in 1996 with a BA in Quantitative Economics and a BS in Chemical Engineering. In 2005, Sam earned his MBA from Rice University.

James K. Lam

Wed, 27 Feb 2008 17:02:03 GMT

James K. Lam - has been with Haddington since July 2001. Mr. Lam is responsible for sourcing investment opportunities and assisting the partners of Haddington in financial analysis and transactional due diligence.

Since working at Haddington, Mr. Lam has been an integral team member in the following transactions: the funding of the Tristream Energy team in 2007, the acquisition of IACX Energy in 2006, the acquisition of the Bobcat gas storage project in 2005, the Sale of Western Hub Properties in 2005, Sago Energy’s acquisition of the Jameson West Texas assets in 2003, the sale of Sago Energy in 2004, the acquisition of Gulf Coast LNG in 2004, and the resolution of the Nations Energy investment in 2004. Mr. Lam currently resides on the Board of Managers of IACX Energy and Tristream Energy.

Prior to joining Haddington, Mr. Lam worked for a combined 5 years in investment banking in the natural gas research groups of Merrill Lynch and Jefferies & Co. Mr. Lam was responsible for maintaining comprehensive research coverage on the energy merchant conglomerates, integrated natural gas companies, natural gas local distribution companies, natural gas gatherers and processors, and pipeline master limited partnerships. Mr. Lam was an Assistant Vice President at Merrill Lynch and an Analyst at Jefferies & Co.

Mr. Lam has a BBA in finance from the University of Houston.

David R. Marchese

Wed, 27 Feb 2008 16:48:37 GMT

David R. Marchese - joined Haddington in June 2006 as a Vice President, assisting with deal sourcing, transactional work, and portfolio company management. Previously Dave was a managing partner at Eschelon Energy Partners, a Houston based private equity fund targeting investments across the energy value chain.

At Eschelon Energy Partners, Dave developed bids and financing plans for several asset acquisitions and business plans. Projects included power generation, natural gas storage, natural gas distribution, in-plant specialty services, and pipeline maintenance and construction. In addition, Dave led many of Eschelon’s institutional investor relations and marketing efforts. As part of the development of Eschelon’s Private Placement Memorandum, Dave developed Eschelon’s market analysis and supply and demand curves. During that time, Dave also worked as a consultant for Eschelon Advisors, including assessment of private equity investment opportunities for family office investors and technical consulting for sell-side equity research firms.

Prior to co-founding Eschelon, Dave was with Reliant Energy’s $125 million private equity and venture capital arm. While at Reliant Dave was also the lead manager in the divestiture of two subsidiaries and a manager in Reliant Energy’s Market Based Structuring Group. In Structuring, Dave was responsible for pricing full requirements energy transactions, swaps, options and tolling agreements on coal, oil, natural gas, and dual fuel power plants in the US. During his career at Reliant he worked in all of the deregulated Eastern US power markets. Additionally, he followed green requirements markets, emissions markets, and transportation and delivery costs for fuel oil and gas.

Before earning his Masters of Business Administration at Vanderbilt University, Dave worked in the engineering and construction of petrochemical facilities as a Chief Field Engineer with Jacobs Engineering, a worldwide leader in providing services to the entire energy value chain. He also holds a Bachelors of Engineering from Vanderbilt University.

Tristream Energy, LLC

Fri, 11 May 2007 22:07:59 GMT

Investment Entity: Tristream Energy, LLC Geography: Lower 48 States Sector: Gas & Oil Gathering, Processing, and Transport Investment Fund: Fund III Initial Investment: January 2007 Haddington is pleased to be the sponsor of Tristream Energy, LLC. Haddington has agreed to provide capital to Tristream to fund the acquisition and/or construction of gathering, processing, treating and other midstream energy infrastructure assets in the lower 48 states. The management team consists of Ken Purgason, Tony Catalano and Mike Urban, previously of Sago Energy, a highly successfully Fund I and Fund II portfolio company. Haddington has a long track record of creating value with the Tristream principals, and look forward to continuing this relationship in Fund III. Haddington believes Tristream is unique in that they are a producer focused midstream company that’s capable in executing on both greenfield developments and acquisitions. They have managed small and large scale gas...

Principals/Managing Directors

Fri, 04 May 2007 20:00:46 GMT

Managing Directors J. Chris Jones Focuses on acquisitions, financing and administrative issues. Formerly employed by Fisk Electric Company and Price Waterhouse. Former COO and CFO of TPC; 25 years of business experience. John A. Strom Focuses on sales, marketing and regulatory issues. Formerly employed by Fish Engineering and Union Carbide. Co-Founder and former President of TPC; 26 years of business experience. Jim P. Wise Focuses on evaluation, coaching and mentoring of management teams, acquisitions and financing structures. Over 39 years business experience with among others: Transco Energy Company, Houston Natural Gas Corp., four successful IPOs, and over 150 acquisitions. M. Scott Jones Oversees legal and administrative issues for Haddington Ventures & portfolio companies. Former Vice President and General Counsel of TPC; 23 years of general corporate and...

Gregory Brown

Tue, 23 Jan 2007 20:46:14 GMT

Mr. Brown has served as Haddington's controller and treasurer since August 2006. He is responsible for financial and tax reporting for Haddington and its related entities and assists in due diligence efforts and investor communications. Mr. Brown has over 30 years of diversified experience as a partner in a leading Houston public accounting firm and as a financial officer for several companies. He has provided results-oriented services to many businesses and executives in a broad range of industries.

Mr. Brown received a BBA in Accounting from the University of Texas at Austin. He is a certified public accountant licensed in Texas and a member of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants.

IACX Energy, LLC

Tue, 16 Jan 2007 22:40:51 GMT

Investment Entity: IACX Energy, LLC Geography: Texas, Kansas, and Oklahoma Sector: Nitrogen Rejection and Gas Gathering Investment Fund: Fund III Initial Investment: December 2006 The gas processing business is constantly changing and has been trending toward the unconventional for some time. Maturing conventional gas production basins have led to the industry’s search for gas in unconventional plays (tight sands, shales, and coal bed methane). Advancements in completion technologies such as pressure fracs and other reservoir stimulation techniques coupled with higher gas prices (greater than $3.50 to $4.00 per thousand cubic foot) have moved many of these plays from the uneconomic category to economic. Haddington’s investment in IACX Energy, LLC (“IACX”), made initially in December 2006, will open yet another unconventional gas play, low-BTU/off-spec gas. IACX has developed smaller scale, mobile, lower pressure processing technologies that can...

Investment Funds

Fri, 05 Jan 2007 15:44:37 GMT

Fund I
Haddington has invested the total capital committed to Fund I of $77 million across seven portfolio companies. To-date, Fund I has generated gross realized returns of $171.1 million on $77.5 million of invested capital. Fund I currently has one remaining investment, yet to be monetized.

Fund II
Fund II initially had total capital commitments of $147 million. However, one significant partner due to strategic reasons exercised it right to pass on $75 million of its $100 million of commitments early in the life of Fund II. Haddington has invested $65.9 million of the $72 million of total remaining capital committed to Fund II across five portfolio companies. To-date, Fund II has generated gross realized returns of $92.6 million on $65.9 million of invested capital. Fund II currently has two remaining investments, yet to be monetized.

Fund III
Haddington closed Fund III in May 2006 with total capital commitments of $182 million. Fund III currently has two investments. 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.

Advisory Board

Tue, 02 Jan 2007 17:35:16 GMT

Haddington Ventures calls on its distinguished Advisory Board to help identify macrotrends in the energy industry, conduct due diligence, identify potential management talent and source deal flow. Dr. E. Linn Draper, Jr. Dr. Draper is the former Chairman, President and Chief Executive Officer of American Electric Power Company, Inc. (NYSE-AEP), one of the largest power utilities in the U.S. He joined AEP in 1992, following his thirteen year tenure with Gulf State Utilities Co. in Beaumont, Texas, where he served as Chairman, President and Chief Executive Officer. Mr. James S. Pignatelli Mr. Pignatelli has served since 1998 as the Chairman, President and Chief Executive Officer of UniSource Energy Company (NYSE:UNS), the holding company for Tuscon Electric Power Company and its unregulated affiliates. He joined Tuscon Electric in 1994 after serving as President and Chief Executive Officer of Mission Energy Company from 1988 to 1993. Mr. Pignatelli served in various positions of...

Haddington Ventures and your Company's Future

Tue, 26 Sep 2006 22:06:25 GMT

Haddington Ventures, through its private equity funds, provides superior returns to its partners and investors by focusing on the midstream energy sector. The Fund 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 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.

View Haddington's Investment Strategy

Enviromental Awareness

Mon, 14 Aug 2006 15:37:59 GMT

In all Haddington investments, we seek to find a responsible balance between essential development and protection of the environment.

More on Enviromental Awareness

Midstream Overview

Wed, 14 Jun 2006 19:20:15 GMT

The Fund will target investment opportunities within the estimated $25 billion midstream sector of the North American energy market. Midstream assets serve to gather, store, transport and process oil, natural gas and natural gas liquids from their production source within the upstream market to end users such as utilities, industrial businesses and residential homes that constitute the downstream market. The midstream sector in North America includes 90 interstate and 70 intrastate pipelines (aggregating roughly 1.2 million miles of pipeline), 525 processing facilities, 120 different storage operators and 28 market centers. Given their function, midstream services are regarded as mission-critical or “must-run” components of the energy market. Disruptions to midstream energy services can generate supply shortages and service interruptions, thereby inconveniencing and increasing prices to consumers. The Principals believe midstream assets generally have favorable investment characteristics, including a lower risk profile versus upstream assets, high barriers to entry, attractive cash flow from operations, and a relatively low level of commodity price exposure.

Download Midstream Diagram

Port Barre Investments, LLC

Mon, 05 Jun 2006 15:09:55 GMT

Investment Entity: Port Barre Investments, LLC Geography: Louisiana Sector: Gas Storage Investment Fund: Fund III Initial Investment: September 2005 For a variety of reasons, the market is looking for more natural gas storage, particularly high-deliverability, multi-cycle per year storage that can be profitably added to the natural gas industry. Specifically, pipeline transportation customers are now in need of more natural gas storage capacity. Natural gas storage provides a buffer between the differing requirements of supply and demand. Being able to deliver incremental gas supplies during periods of high demand (and high price) or to take and store gas when there is a temporary surplus of supply for later use in high demand periods is essential to balance the physical flows of the gas delivery systems. The economic value of gas storage is largely determined by the volatility of natural gas prices. Higher price volatility is tied to tighter supply/demand balance and more swing in...

Gulf Coast LNG, LP

Mon, 05 Jun 2006 15:08:32 GMT

Investment Entity: Gulf Coast LNG, LP
Geography: Texas
Sector: LNG Re-gasification
Investment Fund: Fund II
Initial Investment: September 2004

In the U.S., the decline in natural gas production together with a growing demand to satisfy increasing numbers of gas-fired power plants has resulted in a dramatically expanding gap between domestic supply and demand. As domestic natural gas fields continue to mature, the importation of natural gas from foreign sources of supply is expected to increase. The Department of Energy predicts that the importation of liquefied natural gas (LNG) will increase from 5% of total natural gas imports in 2002 to 39% by 2010.

In mid 2002, Haddington began to look for potential investments in U.S. based LNG re-gasification terminals. Over the past several years, Haddington has reviewed numerous LNG re-gasification projects, including projects on the west coast, the east coast and the Gulf Coast. Of all the projects reviewed, the Calhoun project stood out as having the best site with many superior characteristics, including: local and port authority support, coastal traffic, elevation (to mitigate hurricane issues), interconnectivity to the natural gas grid, and proximity to local industrial markets. Another plus was Gulf Coast LNG’s existing strong core team of energy project development professionals, with previous LNG development expertise.

In September 2004, Haddington made its initial investment in Gulf Coast LNG, LP to develop the Calhoun LNG re-gasification terminal at the Port of Port Lavaca – Point Comfort on the Texas Gulf Coast.

Additional information can be found on the company's website at www.calhounlng.com.

Investment Strategy

Wed, 01 Mar 2006 22:09:35 GMT

The Fund will concentrate its investment efforts primarily on the acquisition and/or development of midstream energy assets – pipelines, gathering & processing systems, natural gas storage projects, etc...; Based upon the team's extensive operating experiences, the Fund is well-positioned to either buy or build assets. The Principals believe this is a key differentiator of Haddington versus other private equity funds because Haddington is not forced to buy assets during periods when acquisition multiples are too high. Haddington believes that the midstream industry dynamics will change dramatically over the next 10 years and that those changes will generate attractive investment opportunities. A key driver of these changes is the fact that U.S. production has been declining and that new supplies will be needed to keep pace with increasing demand. As new supplies are brought to the U.S. market, new infrastructure will be needed to re-align the new supply sources with the current...

Jim P. Wise

Wed, 01 Mar 2006 22:05:52 GMT

Mr. Wise was previously Chairman and Chief Executive Officer of Neostar Group, Inc., his own company active in private equity investing. Mr. Wise previously served as Chief Executive Officer, President and Vice Chairman of the Board of Integrated Electrical Services (NYSE: IES), which he co founded in 1997. His primary duties included responsibility for acquisitions as well as evaluating and selecting management teams. Prior to joining Integrated Electrical Services, he served as Vice President of Finance and Chief Financial Officer at Sterling Chemicals, where he restructured and sold the company. Mr. Wise spent ten years at Transco Energy Company as Executive Vice President and Chief Financial Officer. While at Transco, he served as President and Director of several unregulated subsidiaries.

Mr. Wise has more than 40 years of operational and financial experience with several public companies. During his business career, Mr. Wise has served in a lead role in over $7 billion in financing transactions and over 100 acquisitions, as well as four successful IPOs.

Mr. Wise is a native Houstonian and a graduate of the University of Houston Bauer College of Business where he was named outstanding alumnus in 2000. He is a certified public accountant in Texas and is active in a number of charitable and civic organizations. Mr. Wise joined Haddington’s management team in July 2005 at the initial closing for HEP III, and prior to that served two portfolio companies in Fund II as a senior advisor.