EnCap Energy Transition

Founded in 2019, the EnCap Energy Transition team is dedicated to investing in the decarbonization of energy-intensive elements across our economy. We are excited to attend the Infrastructure Investor Network’s Global Summit in Berlin from March 17th to 20th. We would love to introduce ourselves and discuss our current projects. Feel free to connect with any of our team members on LinkedIn and reach out to Charles Bauer, Matt Crystal, or Brian Chase directly if you would like to schedule a meeting. Investor Relations: Charles Bauer, Matt Crystal, Brian Chase EnCap Energy Transition Team: Jim Hughes, Shawn Cumberland, Meg Murphy, Edward Parnell #IIGlobalSummit #EnergyTransition #Infrastructure

EnCap Investment's Jim Hughes is my interview in the NEW episode of Cool Vector. In his 35 years in the power business, Hughes has never seen a market as "strange" as the current one, driven by data center inelastic demand as well as industrial projects across the US. https://lnkd.in/ePf4jWt2 Hughes is a Managing Partner and head of the EnCap's energy transition business, which last May raised a $1.5 billion fund to invest in power, low-carbon fuels and carbon management. In a wide-ranging interview with Cool Vector, Hughes says hyperscaler demand for data centers has created an attractive supply-demand dynamic for his strategy. "I've never seen a large class of customer, a large set of demand, that is price inelastic," he says. Hughes predicts a five- to seven-year window during which he is confident "we will be able to take capital and earn a return that is a premium return on that capital." Hughes shares his analysis of the the "Republican trifecta" in Washington and its likely impact on his strategy. While the removal of incentives for low-carbon fuels and carbon management companies may challenge those business models, Hughes says any changes to the Biden-administration Inflation Reduction Act will have little impact EnCap's opportunities in power generation. "If I can execute a power project, there is somebody that's going to buy that power under a long term fixed price agreement," says Hughes. "The challenge is not identifying a customer for the power. The challenge is, okay, can I find a site and get control of that site? Can I gain access to the grid?" Formed in 1988, EnCap is one of the largest energy-focused private equity firms in the world. Hughes says his team has the experience to recognize opportunities in a rapidly changing market. "What we bring to the table is gray hair, and having done this for a very long time and having lived through several cycles," he says. Hughes shares is views on the prospects for renewable energy in digital infrastructure, noting the huge interest in using "clean, green" power, offset by an urgency to get projects built using whatever energy sources are available, led by oil and gas. He gives his take on an oft-repeated question in today's digital infrastructure and energy market: Are we in a bubble? Hughes predicts efficiencies in the next generation of GPUs, but says he doesn't see any trend that will reverse excess power demand in the coming years.

EnCap Energy Transition today announced the closing of EnCap Energy Transition Fund II (EETF II). With commitments totaling $1.5 billion, EETF II was created to invest in solutions to decarbonize the power industry, while also opportunistically investing in low carbon fuels and carbon management. Read more about the announcement at the link below. https://lnkd.in/gr-t-EWY

The EnCap Energy Transition team was founded in 2019 to invest in the decarbonization of the energy intensive elements across our economy. The team is focused on investments in low carbon power infrastructure, low carbon fuels, and carbon management. ? We look forward to attending the Infrastructure Investor Network’s Global Summit in Berlin on March 18th – 21st. It would be great to introduce ourselves and share more about what we are working on today. Please feel free to connect on LinkedIn with any of the individuals below and reach out directly to Charles Bauer if you would like to schedule a meeting. Investor Relations: Charles Bauer EnCap Energy Transition Team: Jim Hughes, Tim Rebhorn, Kellie Metcalf, Shawn Cumberland, Meg Murphy #IIGSummit #RenewableEnergy #EnergyTransition