KKR in New Partnership to Hunt For U.S. Oil And Gas Deals
May 14 2019 - 8:16AM
Dow Jones News
By Micah Maidenberg
KKR & Co. (KKR) has formed a new venture to hunt for energy
deals in the U.S., striking its first acquisition in the Permian
Basin, the epicenter of the fracking boom.
The private-equity firm said Tuesday it will work with Spur
Energy Partners LLC to buy oil and gas production and development
assets in the continental U.S.
Spur Energy Partners was formed this year with a financial
commitment from KKR. The company is led by Jay Graham, the former
chief executive of WildHorse Resource Development Corp., which
Chesapeake Energy Corp. (CHK) purchased in February.
Private-equity firms have been looking to bet on oil and gas
assets. NGP Energy Capital Management raised about $4 billion to
invest in the sector, The Wall Street Journal reported earlier this
year. Some firms are looking to buy so-called noncore assets that
publicly traded producers are selling as those companies focus on
their main fields.
In its first deal, the companies agreed to buy interests in 380
gross producing wells and 22,000 net acres on the New Mexico side
of the Permian Basin from Percussion Petroleum LLC. Deal terms
weren't announced. The assets produced 9,200 net barrels of oil
equivalent per day in the first quarter.
The deal in New Mexico kicks off an expected multi-billion
investment partnership, Dash Lane, managing director on KKR's
energy real assets team, said in a statement. The companies didn't
specify how much KKR will invest.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 14, 2019 08:01 ET (12:01 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Chesapeake Energy (NASDAQ:CHK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Chesapeake Energy (NASDAQ:CHK)
Historical Stock Chart
From Sep 2023 to Sep 2024