Page 7 - NorthAmOil Week 25 2022

NorthAmOil INVESTMENT NorthAmOil

Double Eagle raises $1.7bn

for new Permian venture

PERMIAN BASIN US energy developer Double Eagle announced III, which was wholly owned by DoublePoint
on June 19 that it had raised $1.7bn from a group Energy, to Pioneer Natural Resources for about
of investors to form Double Eagle Energy Hold- $6.4bn.
ings IV and Tumbleweed Royalty IV. The two It is expected that Double Eagle IV will pursue
new entities will focus on investing in oil and gas a similar strategy to its predecessor companies,
properties and royalty and mineral investments but on a larger scale as a result of the more sub-
respectively in the prolific Permian Basin. stantial upfront commitment from its investors.
This will be the fourth iteration of Double Double Eagle’s decision to scale up comes
Eagle and the majority of the capital will come as Permian production is projected to reach a
from private equity firm EnCap Investments. record of 5.316mn barrels per day (bpd) in July,
Additionally, minority investments will come according to the US Energy Information Admin-
from fellow institutional investors Apollo Global istration (EIA).
Management and Magnetar Capital. The com- “Together with the financial strength of our
pany will be led by the same management team partnership, our track record of success and our
as its predecessor companies, with John Sellers world-class operating team, we can confidently
and Cody Campbell remaining as co-CEOs. and aggressively pursue very large acquisitions
The investment marks one of the largest while continuing to organically assemble smaller
pools of capital raised to be allocated to oil and opportunities and undertake an ambitious
gas development since the beginning of the pan- development programme,” Campbell and Sell-
demic, when many investors shied away from the ers stated.
US oil patch as a result of poor past returns and Fort Worth-based Double Eagle says it has
increasing environmental consciousness. been one of the largest independent acquirers of
The formation of Double Eagle IV comes on oil and gas leasehold interests across Texas, the
the back of the successful sale of Double Eagle Mid-Continent and the Rockies.™

Percussion reportedly puts Permian

Basin acreage up for sale

PERMIAN BASIN PRIVATE equity-backed Percussion Petroleum 375 drilling locations. The company projects
II is reportedly seeking buyers for around 25,000 output from the assets could grow to up to
net acres (101 square km) in the prolific Permian 33,000 boepd by the end of the year.
Basin. The company is seeking to fetch up to Percussion’s assets are located in the Delaware
$1.5bn for the acreage as it aims to capitalise on sub-basin within the Permian. The Delaware
rising oil prices, three sources familiar with the has been one of the busiest regions for multi-bil-
matter told Reuters. lion-dollar transactions in recent months.
If it succeeds in finding a buyer at its desired Earlier this month, billionaire Harold
price, the company would be more than dou- Hamm bid to take Continental Resources pri-
bling what it paid for the land in 2021. vate, in a deal that would value the company
Percussion acquired the land last year from at more than $25bn, months after it bought
Oasis Petroleum for $375mn plus contingent Delaware Basin acreage from Pioneer Natural
payments, as the latter sought to position itself Resources. And last month Colgate Energy
as a pure-play Williston Basin company. Partners agreed to merge with Centennial
Sellers are hoping that with oil prices remain Resource Development to form a $7bn Permi-
at multi-year highs, buyers will be keen to an-focused oil producer.
increase their holdings in the Permian. Mean- The US Energy Information Administra-
while, backers of privately owned shale produc- tion (EIA) projects that the Permian Basin will
ers are seizing the opportunity to cash in and exit achieve record output of 5.316mn barrels per day
their investments at a profit. in July. The agency also expects output across the
Currently, Percussion produces about 21,000 seven major US shale basins to rise in July to hit
barrels of oil equivalent per day (boepd) from 8.9mn bpd, its highest level since March 2020.™

Week 25 23•June•2022 www. NEWSBASE .com P7