NEW YORK--(BUSINESS WIRE)--
Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR")
announced today that it has entered into a definitive agreement to
acquire certain Barnett Shale and Arkoma Basin properties (the "Assets")
from WPX Energy ("WPX") for $306 million. The transaction, which is
expected to close in the second quarter, is being made through KKR
Natural Resources ("KNR"), KKR's partnership with Premier Natural
Resources ("Premier") to pursue investments in North American oil and
gas properties, and is KNR's third acquisition in the Barnett Shale.
The Assets are comprised of 27,000 net acres in North Central Texas and
Eastern Oklahoma and 66,000 net acres in the Arkoma. The Barnett shale
properties have a current net production of approximately 67 million
cubic feet per day.
KNR has acquired over $900 million of assets since inception, including
over $600mm of assets to date in 2012, and now operates over 150 mmcfe/d
of net production. With $1 billion of capital currently available for
investment, KNR has the capacity to purchase over $2 billion of
additional properties and will seek to acquire high-quality, producing
assets both within and outside its core operating areas over the next
"We see attractive opportunities to invest behind the development of
domestic energy resources and remain excited about the opportunity to
grow our natural resources platform by continuing to acquire non-core
oil and gas properties from high quality operators and allowing them to
reinvest the proceeds in their attractive growth opportunities," said
Jonathan Smidt, a Member of KKR and Head of KKR Natural Resources.
KKR announced its partnership with Premier in February, 2010. Founded in
June 2006 by former executives of Vintage Petroleum, Inc., Tulsa,
Oklahoma-based Premier currently operates a portfolio of assets located
in the Barnett Shale, the Texas Gulf Coast, the Permian Basin,
Louisiana, and Mississippi and has experience operating assets in most
of the major producing basins in the United States.
KKR has been investing in the energy sector for more than twenty years,
and today KKR's energy business spans the globe and covers the full
energy supply chain. KKR's recent oil and gas transactions include
Samson Resources and Hilcorp Resources, as well as the formation of
partnerships with Chesapeake Energy and El Paso Corporation. A complete
list of KKR's energy investments is available on KKR.com.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $59.0 billion in assets under
management as of December 31, 2011. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.
Premier Natural Resources was formed out of the acquisition and
exploitation business plan implemented by Vintage Petroleum, Inc.
Vintage was started in 1983 by Charles C. Stephenson and a team of
executives that built the organization up to a 75,000 BOEPD oil and gas
company that owned and operated properties in the U.S., Argentina,
Bolivia, Canada, Ecuador, Trinidad and Yemen before being merged with
Occidental Petroleum, Inc in January, 2006 for a market evaluation of
$4.1 billion. In North America, Vintage operated properties in all U.S.
major producing states from Alabama to California and from Canada to the
Federal Offshore Gulf of Mexico. For more information, visit www.premiernaturalresources.com.
Source: Kohlberg Kravis Roberts & Co. L.P.
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