Private Equity Raises $250 million for Houston Upstream Company

Hibernia Energy III, LLC (“Hibernia III”) is pleased to announce it has raised $250 million of new equity commitments from NGP through NGP Natural Resources XII, L.P., the most recent NGP private equity fund focused on natural resources.


In addition to the commitment from NGP, Hibernia management and members will be committing in excess of $21 million in equity. Hibernia III’s strategy is to acquire and prudently develop unconventional oil and gas assets in Texas, leveraging its proprietary relationships and operational expertise. The Houston, Texas based Hibernia team previously acquired, operated and developed assets in Martin County, Texas within the Midland Basin, divesting assets to both Athlon Energy and Eagle Energy Trust.
Hibernia III is led by P. Embry Canterbury, Sean Keenan and John Blevins. Embry previously co-founded Hibernia Energy, LLC (“Hibernia I”) and Hibernia Energy II, LLC (“Hibernia II”), which originally partnered with NGP in July 2010 and May 2013. Embry will be joined by Sean Keenan and John Blevins who will act as CFO and COO, respectively. Additional management team members have served in various roles at Permian-focused companies as reservoir engineers, operations engineers, geologists and land and business development managers. Carl Carter III, who co-founded Hibernia I and II, will act as a Strategic Advisor to the Hibernia III team. The senior management team has developed a strong track record in the Permian and other unconventional basins throughout the United States and brings 60+ years of industry experience to Hibernia III.
P. Embry Canterbury, CEO of Hibernia III, commented, “After two successful partnerships in the Midland Basin, we are excited to again be working with NGP on building another oil and gas company focused on creating significant value for our partners and team members. We believe there are tremendous opportunities in today’s market to acquire, develop, and realize value in multiple, unconventional resources and we have assembled a best-in-class team to execute this strategy.”
“NGP is excited and grateful to partner with the Hibernia III team,” Patrick McWilliams, Partner at NGP, said. “We are thrilled to get to work again with such an energetic, disciplined and skilled company and could not be happier to continue the partnership. We have known Embry and the Hibernia III team for years, and respect the dynamic culture, top-tier operating capabilities, and deep local relationships that will make Hibernia III truly successful.”

Private equity firms Pine Brook and Riverstone to Invest Up to $600 Million in Permian

Admiral Permian Resources LLC has secured $600 million in financing from Pine Brook and Riverstone Holdings. Based in Midland, Texas, Admiral is an exploration and production company focused on acquiring and developing oil and gas properties in the Permian Basin.

NEW YORK and MIDLAND, Texas —March 9, 2017— Admiral Permian Resources, LLC, (“Admiral” or “the Company”) today announced it has secured a $600 million line of equity investment co-led by Pine Brook and Riverstone Holdings (“Riverstone”). Admiral is a newly-formed exploration and production (“E&P”) company focused on the acquisition and development of oil and gas properties in the Permian Basin.

Headquartered in Midland, Texas, Admiral is led by Chief Executive Officer Denzil West, former President and Chief Operating Officer of Reliance Energy, which sold the majority of its upstream assets to Concho Resources for $1.625 billion in October 2016. Mr. West is joined on the senior management team by co-founders Scott Parkison (Chief Commercial Officer), Jason Henderson (Chief Financial Officer), and Paul Colwell (Executive Vice President of Land). Admiral’s management team brings strong E&P and midstream industry experience from companies such as Occidental Petroleum, Concho Resources and Reliance Energy.

Admiral is capitalized to pursue opportunities across the entirety of the Permian Basin and will target a variety of transaction structures – asset and leasehold acquisitions, farm-in transactions and / or joint ventures with existing operators and landowners.

“We are honored to have world-class partners in Pine Brook and Riverstone,” said Mr. West. “This partnership, along with the technical and operational expertise of the Admiral team will provide an exceptional opportunity to take advantage of the current market environment and build a substantial oil & gas business in the Permian Basin.”

“We are extremely pleased to partner with the Admiral team,” said Rich Aube, Co-President of Pine Brook. “The Admiral team has an outstanding track record of success and will leverage its deep knowledge of the Permian Basin to identify and develop high quality properties. The Company has already built a healthy pipeline of prospects and is well situated to capitalize on the continued opportunities we see in the Permian Basin.”

“Our equity commitment to Admiral reflects the confidence that we have in Denzil and the entire Admiral team,” said Robert Tichio, Partner at Riverstone. “The leadership team at Admiral brings a wealth of technical knowledge in all aspects of the oil & gas business and we look forward to providing our capital and resources to help build this venture.”

About Pine Brook
Pine Brook is an investment firm that manages more than $6.0 billion of limited partner commitments that makes “business building” and other equity investments, primarily in energy and financial services businesses. Pine Brook’s team of investment professionals collectively has over 300 years of experience financing the growth of businesses with equity, working alongside talented entrepreneurs and experienced management teams to build businesses of scale without relying on acquisition leverage. 

About Riverstone
Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with over $34 billion of capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power, and renewable sectors of the energy industry. With offices in New York, London, Houston, and Mexico City, Riverstone has committed over $34 billion to more than 130 investments in North America, South America, Europe, Africa, Asia and Australia.

About Admiral Permian Resources
Admiral is a privately held exploration and production company focused on the acquisition and development of oil and gas properties in the Permian Basin. Admiral’s strategy is to use leading edge technologies to identify and develop oil rich resource properties. Its experienced management team has a proven track record in the oil and gas industry, predominantly in the Permian Basin, and is focused on maximizing value. Admiral is headquartered in Midland, Texas with offices in Austin, Texas.

Local energy-focused Private Equity firm leading $200M equity commitment

A local energy-focused private equity firm is pumping millions into a Midland oil and gas company.

Houston-based Post Oak Energy Capital LP is leading a $200 million equity commitment to Moriah Henry Partners LLC, according to a release. Two other firms, Midland-based Henry Energy LP and Moriah Energy Investments LLC, are co-investing with Post Oak.

Moriah Henry Partners aims to acquire and develop oil and gas in the Midland Basin, which is part of the Permian Basin, an area that’s seen a surge in deals in recent months. The company plans to use proceeds from the investment money to fund acquisitions in the core of the Midland Basin.

“We are delighted to partner with these industry veterans and leaders,” Post Oak Managing Director Frost Cochran said in the release. “Their deep experience in the Midland Basin will allow us to capitalize on numerous opportunities in one of the most economic basins in the country.”

Post Oak Energy Capital closed a $600 million fund in May. The fund was expected to be used for investments in North American oil and gas companies, oil field services and other similar projects.

Private Equity – Backed ProPetro Files $345M IPO

New York (February 8, 2017, 3:45 PM EST) — ProPetro Holding Corp., a private equity-backed provider of fracking services to oil and gas companies, on Wednesday filed initial public offering plans to raise up to $345 million under guidance from Latham & Watkins LLP, marking the latest energy issuer to rejoin capital markets.


Pricing terms were not disclosed in the offering. Upon completion, ProPetro plans to spend proceeds on repaying debt and buying new hydraulic fracturing — or fracking — units so it can increase business in the oil-rich Permian Basin bordering Texas and New Mexico.

“The Permian Basin is widely regarded as the most prolific oil-producing area in the United States, and we believe we are currently the largest private provider of hydraulic fracturing services in the region by hydraulic horsepower … ,” the company said in its registration statement.

Midland, Texas-based ProPetro primarily serves exploration and production companies, providing equipment and services to Diamondback Energy, Parsley Energy, Pioneer Natural Resource and others. It said no single customer represents more than 20 percent of its revenue. ProPetro recorded $569.6 million in revenue in 2016, though it also lost $45.8 million, according to its filing.

The company lists Energy Capital Partners, a private equity firm that invests in North American energy projects, among its leading shareholders. The filing does not indicate Energy Capital’s stake or whether it plans to sell shares in the IPO.

ProPetro is joining an IPO pipeline that is attracting more energy issuers of late, buoyed by rising oil and gas prices.

Last week, Texas-based Kimbell Royalty Partners LP, an owner of oil and natural gas mineral and royalty interests, raised $90 million in an IPO advised by Baker Botts LLP, while Kentucky coal miner Ramaco Resources Inc. raised $81 million in an offering guided by Vinson & Elkins LLP.

Kimbell priced its IPO at $18 per share, below its $19 to $21 range, while Ramaco priced at $13.50, the middle of its $12 to $15 range.

The recent offerings follow private equity-backed Keane Group Inc., which raised $508 million in an upsized deal last month that represented the year’s first IPO, advised by Schulte Roth & Zabel LLP. The Houston-based company makes wells ready for production for fracking industry clients.

ProPetro plans to list its shares on the New York Stock Exchange under symbol PUMP. The company has hired Goldman Sachs, Barclays, Credit Suisse and JPMorgan as lead underwriters.

Private Equity Scooping Up Billions In North Sea Assets

There is confirmation it’s “money on” right now in the global petroleum sector — with one of the biggest single deals in years coming down in an unexpected place. From a virtually unknown acquirer — which has instantly become the largest independent producer in the neighborhood. That’s a London-based firm called Chrysaor Holdings. Which yesterday unveiled a $3.8 billion purchase of North Sea assets from Shell.  

Under the deal, Chrysaor is buying Shell’s working interest in seven North Sea projects. Coming with a current 115,000 b/d of oil equivalent production — plus another 13,000 b/d production in the Shetland Islands, which is expected to be onstream soon.

In total, Chrysaor will acquire 350 million barrels of proven and probable reserves — making the firm the largest U.K. independent producer focused on the North Sea. In fact, one of the largest producers overall in this area. Here’s the most interesting part: the deal appears to have been orchestrated by private equity backers.

With Chrysaor paying for the assets partly through a $1 billion investment from PE outfit EIG Global Energy Partners. That’s a very telling move, given that EIG is a Washington, D.C.-based fund that has to-date focused on U.S. oil and gas projects — with some stepouts to Australia and South America. But now this big buyer want to take a run at the North Sea. Suggesting management sees potential in this mature basin, even as majors like Shell exit in favor of higher-impact plays. This is much like what happened in the U.S. Gulf of Mexico shelf the last few years. Where majors like Chevron sold big asset packages to private equity-backed E&Ps. It will be critical to see what happens next. If new kids like Chrysaor can indeed grow production and reserves, it could encourage further PE purchases of mature assets. Watch for operational updates from the North Sea’s new leading producer.