FORT WORTH, Texas – An oil and gas fund has agreed to invest up to $450 million of equity and delayed draw unsecured debt capital to support additional Midland Basin asset acquisition.
Funds managed by affiliates of Apollo Global Management, LLC and Post Oak Energy Capital, LP announced Double Eagle Energy Permian LLC and Magnetar Capital entered into an strategic agreement.
Double Eagle Energy Permian LLC was recently formed through the combination of Double Eagle Energy Lone Star LLC and Veritas Energy Partners Holdings LLC.
Double Eagle owns more than 60,000 core Midland Basin net acres (over 70 per cent operated) located in Midland, Martin, Howard, Glasscock, Upton and Reagan counties.
Double Eagle has rapidly grown to become one of the largest pure-play Midland Basin E&P companies.
The capital infusion from Magnetar marks a significant step in Double Eagle’s growth strategy and, along with continued support and commitment from Apollo and Post Oak, provides significant opportunity to expand on the Company’s world-class asset base.
“We are excited to have Magnetar as a partner and appreciate their support and commitment to our vision. We have the clear opportunity to create a tremendous amount of additional value, and we look forward to working alongside the Magnetar team in executing our plans,” said John Sellers and Cody Campbell, Co-CEOs of Double Eagle.
The company has initiated both an operated horizontal and vertical rig program and expects to use the additional capital to increase operations.
“The Double Eagle team is uniquely positioned to execute on its growth strategy in the absolute core of the Midland Basin. We look forward to a long and mutually beneficial relationship with the team and the Company,” said Eric Scheyer, Partner at Magnetar Capital.