Pegasus Resources, LLC, a mineral and royalty company based in Fort Worth, Texas, has secured a second $300 million equity commitment from EnCap Investments L.P.

EnCap’s total commitment to Pegasus is now $600 million. Pegasus received the initial commitment of $300 million from EnCap in November 2017. Pegasus focuses on acquisition and management of mineral and royalty properties in the core of the Delaware and Midland Basins.

“Our goal at Pegasus has always been to create long-term value by building a portfolio of mineral and royalty interests with sustainable, multi-generational growth potential,” said Pegasus Chief Executive Officer George M. Young Jr.

“We look forward to continuing our successful partnership and being part of the Pegasus growth story,” said EnCap Co-Founder and Managing Partner David Miller.

Pegasus has a multidisciplinary team that allows it to develop broad basin studies, understand the unique geology and well economics in specific areas of interest, and manage its assets.

Pegasus continues its partnership with Tilden Capital, LLC.

“We are pleased with the significant deal flow we continue to see and are confident in the mineral and royalty space as a whole,” said Young.  “Our team has the capability to stay up-to-date on broad trends in the Permian Basin, which allows us to identify areas with solid well performance and the best potential for long-term upside.”

Pegasus is led by Chief Executive Officer George M. Young Jr., President and Chief Operating Officer Will O. Rodgers, and Chief Financial Officer Lynn Frank.


EnCap Sells Shale Assets to Kimbell in $150 Million Stock Deal

From the Houston Chronicle

Houston private equity firm EnCap Investments is unloading more than 12,000 acres of oil and gas royalties to Kimbell Royalty Partners (stock ticker: KRP) in an all-stock deal worth more than $150 million.

EnCap is acquiring a stake in Fort Worth-based Kimbell, which went public two years ago, by boosting Kimbell’s total net royalty acreage position by almost 10 percent.

Kimbell said the oil and gas royalty acreage acquired in the deal is primarily in South Texas’ Eagle Ford shale, West Texas’ booming Permian Basin, the Haynesville shale in Texas and Louisiana, and in the emerging Powder River Basin in Wyoming.

Rapidly-growing Kimbell said the deal includes about 1,600 barrels of oil equivalent of daily production that will keep rising because 17 rigs are actively drilling on the combined acreage.

“This acquisition kicks off what we believe will be another year of consolidation within the oil and gas mineral and royalty space in the U.S.,” said Kimbell Chief Executive Bob Ravnaas.

Kimbell has nearly quadrupled its oil and gas production since going public, he said, with royalty interests in about 95,000 wells nationwide.

 


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