Market Overview

Candor Midstream Secures $200 Million Equity Commitment from EnCap Flatrock Midstream

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Candor
Midstream, LLC
("Candor") today announced an initial venture capital
commitment of $200 million from EnCap
Flatrock Midstream
("EnCap Flatrock"). Headquartered in Houston and
established in 2017, Candor is an independent energy company focused on
the development of midstream infrastructure across North America. Candor
is pursuing organic, greenfield projects and select acquisition
opportunities.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180821005163/en/

Candor Midstream founder and CEO Darrel Hagerman. (Photo: Business Wire)

Candor Midstream founder and CEO Darrel Hagerman. (Photo: Business Wire)

Candor offers tailored midstream solutions including gas gathering,
processing and treating; crude oil gathering, terminaling and logistics;
and produced water gathering.

Candor's management team is a cohesive group of straightforward industry
professionals with a long track record of value creation at companies
including Crestwood Midstream Partners LP, Enbridge, ONEOK Inc. and
Delhi Gas Pipeline Corp. The management team is led by Candor's founder,
President and Chief Executive Officer Darrel Hagerman, a 33-year energy
industry veteran, and co-founder and Chief Commercial Officer Derek
Gonseaux. Other key members of the Candor team are Chief Financial
Officer Eric Howell and Senior Vice President, Operations Barry Robison.

CEO Perspective

"Our team is truly like no other," said Candor President and CEO Darrel
Hagerman. "We have a tremendous amount of experience and understand that
every producer has unique needs. We spend a lot of time meeting
face-to-face in our customers' offices and getting our hands dirty out
in the field, where we work alongside producers to get a first-hand look
at their challenges and opportunities. We think that's the best way to
really get to know our customers and develop effective midstream
solutions that start at the wellhead."

"Candor has been blessed in so many ways. We are humbled and excited to
work with EnCap Flatrock. We engaged with several potential financial
sponsors, but ultimately chose to work with EnCap Flatrock. Our core
values are aligned, which provides a sound footing to navigate the
ever-changing industry landscape. EnCap Flatrock's wisdom, sound
business fundamentals, financial strength and foresight will help us
execute on Candor's aggressive growth strategy."

From EnCap Flatrock Midstream

"We are very pleased to welcome Darrel and the rest of the Candor
Midstream team to the EnCap Flatrock family," said EnCap Flatrock
Midstream Managing Partner and founder Bill Waldrip. "Producers across
the country know and trust the Candor team and genuinely enjoy working
with them. That's a huge asset. We look forward to helping them grow a
very successful company."

Legal Advisers

Crain, Caton & James served as legal adviser to Candor with partners
David L. Griffis, Jonathan T. Bickham and Larry George in the lead roles
from the firm's Houston office. Gibson, Dunn & Crutcher LLP served as
counsel to EnCap Flatrock Midstream with partners Hillary H. Holmes and
Beau Stark in the lead roles from Houston and Denver, respectively.

About Candor Midstream, LLC

Candor Midstream is an independent energy company that provides a full
suite of midstream services to oil and gas producers across the U.S.
Candor is led by a team of seasoned industry professionals who have
worked in virtually every shale play in the country and are well-known
and trusted by the industry's premier operators. Headquartered in
Houston, Candor was established in 2017 by President and CEO Darrel
Hagerman. The company is backed by EnCap Flatrock Midstream. For more
information please visit www.candormidstream.com.

About EnCap Flatrock Midstream

EnCap Flatrock Midstream provides value-added growth capital to proven
management teams focused on midstream infrastructure opportunities
across North America. The firm was formed in 2008 by a partnership
between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based
in San Antonio with offices in Oklahoma City and Houston, the firm
manages investment commitments of nearly $9 billion from a broad group
of prestigious institutional investors. EnCap Flatrock Midstream is
currently making commitments to new management teams from EFM Fund IV, a
$3.25 billion fund. For more information please visit www.efmidstream.com.

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