June 19 (Reuters) – Double Eagle, a team of prolific oil and gas developers focused on the Permian Basin, has raised more than $1.7 billion from a group of investors to fund its latest venture, according to a statement to Reuters on Sunday.
The sum is one of the largest pools of capital dedicated to oil and gas development since the pandemic, after many investors turned their backs on the U.S. oil sector in recent years due to a mix of poor past returns. industry and growing environmental awareness. .
However, the Double Eagle team, led by co-CEOs Cody Campbell and John Sellers, has established a track record of building high-quality businesses with strong returns. Its latest project, DoublePoint Energy, was sold in May 2021 for around $6.4 billion to Pioneer Natural Resources (PXD.N). Read more
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This will be the fourth iteration of Double Eagle. Much of the money is coming from private equity firm EnCap Investments, with contributions from other institutional investors Apollo Global Management (APO.N) and Magnetar Capital, as well as other backers, including management by Double Eagle.
The $1.7 billion will be split between Double Eagle Energy Holdings IV LLC, aiming to replicate DoublePoint’s success in developing a new oil and gas producer, with the remainder going to Tumbleweed Royalty IV LLC, which will acquire the mining rights and royalties, according to the statement. added.
“With the financial strength of our partnership, our track record of success, and our world-class operating team, we can confidently and aggressively pursue very large acquisitions while continuing to organically bring together smaller and larger opportunities. to undertake an ambitious development program,” said Campbell and told Sellers.
Both Double Eagle IV and Tumbleweed will focus on the Permian Basin, the region of Texas and New Mexico known as the heart of the US shale industry.
Permian production is expected to hit a record 5.316 million barrels per day in July, according to the US Energy Information Administration. Read more
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Reporting by David French in New York and Shariq Khan in Bengaluru; Editing by Chizu Nomiyama
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