Proactive’s Post

The Wall Street Journal reports that Houston-based private equity firm Five Point Energy has closed $1.4 billion for infrastructure development, surpassing its $1.25 billion target. Author Luis Garcia highlights that the fund's investments include backing Deep Blue Midland Basin, a critical joint venture with Diamondback Energy. Additionally, Five Point Energy's highly successful investment in LandBridge has yielded strong returns following its IPO. https://lnkd.in/e88FJZb2 #Infrastructure #Infra #RealAsset #RealAssetInvesting

Diversified Energy Company completes asset acquisition in East Texas @div_energy #LSE #NYSE #DEC. Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) told investors it has completed its acquisition of operated natural gas assets in East Texas, for a gross headline figure of $69 million. The net price, after adjustments, was confirmed by the company as $49 million. It adds some 70 billion cubic feet equivalent (Bcfe) of ‘proved developed producing’ (PDP) reserves, worth $89 million. Production across the acquired assets currently amounts to about 21 million cubic feet equivalent per day (mmcfepd), representing some $19 million of estimated earnings (adjusted... http://ow.ly/ypkK105NnGh

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) told investors it has completed its acquisition of operated natural gas assets in East Texas, for a gross headline figure of $69 million. The net price, after adjustments, was confirmed by the company as $49 million. It adds some 70 billion cubic feet equivalent (Bcfe) of ‘proved developed producing’ (PDP) reserves, worth $89 million. Production across the acquired assets currently amounts to about 21 million cubic feet equivalent per day (mmcfepd), representing some $19 million of estimated earnings (adjusted EBITDA) over the next twelve months. “We are excited to announce the completion of another acquisition of high-quality, bolt-on assets within [the] East Texas region, which are immediately accretive to operations, further increase operating scale and opportunity for cost synergies,” chief executive Rusty Hutson said in a statement. “We look forward to... More at #Proactive #ProactiveInvestors http://ow.ly/ypkK105NnGh

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has further increased its footprint in East Texas, acquiring interests in a package of assets. The acquisition, priced at $68 million, will add 21 million cubic feet per day (4,000 barrels oil equivalent) of production and 70 billion cubic feet (12mln barrels oil equivalent) of Proved Developed Producing (PDP) reserves to Diversified's portfolio. Separately, and concurrently, a third-party development company is acquiring undeveloped acreage for approximately $19 million, with Diversified taking a 5% minority interest for an investment of $1 million. DEC will pay the seller, described as “a regional operator”, $18 million in cash with the remainder of the deal consideration paid in new DEC shares. More at #Proactive #ProactiveInvestors http://ow.ly/3m9f105G4In

Sector-Focused Oil and Gas PE Firms: The Unsung Heroes of High Returns 🌟 Hats off to the sector-focused oil and gas private equity firms! 🎩 These specialized players armed with the deep-sector knowledge have been delivering stellar exits while the large generalist firms fled the sector, chasing renewables and infrastructure investments. Gone are the days of big generalist PE firms, riddled with inefficiencies and bloated with individuals more interested in salaries and bonuses from hefty management fees than in driving true value. 🚫💼 The future belongs to sector-focused PE firms, ready to outshine and outperform these mammoths. Kudos to the EnCap Investments L.L.C Quantum Capital Group and many others in supporting the Energy Industry. #OilAndGas #PrivateEquity #SectorFocused #InvestmentSuccess #SpecializedInvesting #HighReturns #EnergySector #PrivateEquityExcellence #LinkedInFinance #privateequity #energyfinance

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has completed the acquisition of natural gas properties and related facilities in eastern Texas from Crescent Pass Energy. The purchase price of $106 million was adjusted to a net price of $101 million after customary adjustments. Acquired assets include Proved Developed Producing (PDP) reserves of approximately 170 billions of cubic feet equivalent and current net production of 38 million cubic feet per day.  The acquisition's estimated Next Twelve Months (NTM) Adjusted EBITDA is projected to be $26 million, leading to a purchase price multiple of 3.8x. Diversified is funding the acquisition through the issuance of 2.25 million new ordinary shares and $71 million in cash. These new shares represent approximately 4.77% of the company’s existing issued share capital. Diversified’s chief executive Rusty Hutson stated: "We are excited to announce the completion of... More at #Proactive #ProactiveInvestors http://ow.ly/2luF105FAk1

Quantum Capital Group, a private equity company, agreed to acquire oil and gas operations from Oaktree Capital Management, L.P.-backed Caerus Oil and Gas LLC, a company that invest in conventional oil and gas properties, for $1.8bn. “As an active private energy investor, we recognize the important role of expanding access to clean and reliable energy in key markets across the United States. This transaction represents a unique opportunity for Quantum to invest in substantial natural gas production alongside large, contiguous acreage positions containing sizable hydrocarbon resources with significant value creation potential. We believe that KODA and QB Energy are well positioned to steward the next phase of development and operation of the Assets to serve responsibly natural gas demand centers in the western US while generating attractive returns for our investors," Tom Field, Quantum Partner. Quantum is advised by Vinson & Elkins and Joele Frank (led by Katherine Thompson). Caerus is advised by Bank of America, Evercore, Jefferies, Davis Graham & Stubbs LLP and Latham & Watkins. #MergersAcquisitionsDivestitures #OilAndGas #Energy

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has announced its latest acquisition, picking up what it described as high-quality natural gas properties in eastern Texas. DEC is paying $106 million to acquire the assets from Crescent Pass Energy, including the issuing 2.4 million shares to the seller. The asset package comprises 827 operated wells and over 500 miles of pipelines, with current production of 38 million cubic feet per day, with low annual decline rates, and earning (NTM EBITDA) of $26 million per year. It adds 170 billion cubic feet of PDP (proved developed and producing) reserves, valued at $155 million. Rusty Hutson, DEC chief executive, described the assets as “a perfect fit” for the company’s existing East Texas portfolio. “The accretive transaction adds scale to our Central region footprint and remains consistent with our strategy to focus on high-quality, low-decline producing assets at... More at #Proactive #ProactiveInvestors http://ow.ly/wJZq105A5YJ

Tailwater Capital LLC announces sale of Tall Oak Midstream LLC III to Summit Midstream Corporation - Tailwater Capital has announced the sale of Tall Oak Midstream III to Summit Midstream Corporation for approximately $450 million. - The sale includes $155 million in cash and around 7.5 million shares of Summit Class B common stock and common units representing about 40% ownership in the pro forma company. - Up to $25 million in contingent consideration in cash may be paid over specific measurement periods through March 31, 2026. - The transaction is expected to close in the fourth quarter of 2024, subject to customary conditions and approvals. - Four directors appointed by Tailwater will serve on Summit's board after closing. - Tall Oak operates a significant gas gathering and processing system in the Arkoma Basin with two 220 million cubic feet per day natural gas processing plants and extensive gathering lines. - Tailwater Capital's Co-Founder, Jason Downie, expressed optimism about partnering with Summit to enhance value creation initiatives. - Ryan Lewellyn, CEO of Tall Oak, praised the team's performance and stated confidence in Summit continuing to capitalize on opportunities in the Arkoma Basin. - TPH&Co. served as the exclusive financial advisor for Tailwater, while various legal and financial advisors supported both parties in the transaction. - Tailwater Capital is a private equity firm based in Dallas with a strong track record in energy and growth infrastructure investments. https://lnkd.in/gtyP7p-T

Quantum Capital Group, a private equity firm, has completed the acquisition of Caerus Oil & Gas and is dividing Caerus' assets in Colorado and Utah between two of its portfolio companies. This deal highlights the growing interest of buyout firms in the oil and gas sector, which has seen a surge in deals following the post-Covid recovery in energy prices. Notably, this transaction is a rare instance of a secondary buyout in the U.S. oil and gas industry, as corporate buyers have traditionally been the ones acquiring private equity-backed energy assets.