New Partnership to Acquire Permian Northwest Shelf Assets
HOUSTON–(BUSINESS WIRE)–
Spur Energy Partners LLC (“Spur”) and KKR, a leading global investment
firm, today announced the formation of a partnership to acquire large,
high-margin oil and gas production and development assets across the
Lower 48. The companies also announced the signing of a definitive
agreement to acquire the Permian Northwest Shelf assets of Percussion
Petroleum LLC.
The acquisition includes interests in approximately 380 gross producing
wells and 22,000 net acres situated in the core of the Yeso formation in
Eddy & Lea Counties, New Mexico, as well as associated water and
midstream assets. During the first quarter of 2019, the assets produced
approximately 9,200 net barrels of oil equivalent per day (85% liquids).
The acquisition is expected to close in the second quarter of 2019,
subject to customary closing conditions.
Spur is led by CEO Jay Graham, co-founder and former CEO of WildHorse
Resource Development Corporation (“WRD”), along with a core team of
executives and key technical personnel from WRD who have worked together
for many years through multiple successful upstream oil and gas
ventures. Spur intends to apply its proven expertise to acquire and
enhance assets across the Lower 48 by combining strong commercial
capabilities with a focus on operational efficiency and technical
execution.
Jay Graham, Spur CEO, said, “Given their long-term approach and
commitment to investing in scaled, cash flowing E&P assets with growth
potential, KKR is the ideal partner for Spur as we look to build a large
scale business in the oil and gas sector that creates value through
exceptional technical and operational execution. We look forward to
working together as we make our first investment in this high-quality
asset with a strong existing production base and attractive development
potential.”
Dash Lane, Managing Director on KKR’s Energy Real Assets team,
commented, “This acquisition is the first step in what we expect to be a
multi-billion dollar investment partnership with Spur, which we believe
is well-positioned to create significant value in today’s oil and gas
market. We have known the Spur team for many years, have seen firsthand
their commercial and operational expertise, and are thrilled to be
partnering with Jay and his team.”
The Spur and KKR partnership will be funded by funds affiliated with
KKR’s Energy Real Assets strategy, which has invested approximately $4.0
billion in capital across 12 transactions since 2015 and manages a
portfolio of oil and gas assets in numerous unconventional and
conventional resource areas across the United States.
About Spur Energy Partners
Spur Energy Partners was formed by management in 2019 with a commitment
from KKR and is focused on delivering superior long-term investor
returns by acquiring and developing oil and gas assets with base
production and substantial low-cost development inventory across the
Lower 48.
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic partners that
manage hedge funds. KKR aims to generate attractive investment returns
for its fund investors by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation with KKR portfolio companies. KKR invests its own capital
alongside the capital it manages for fund investors and provides
financing solutions and investment opportunities through its capital
markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com
and on Twitter @KKR_Co.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190514005284/en/
Media:
KKR:
Kristi Huller or Cara Major, +
1-212-750-8300
media@kkr.com
Source: KKR