Double Eagle Energy Permian LLC Announces Strategic Relationship to Fund Midland Basin Asset Acquisitions and Development
November 14 2016 - 6:40PM
Business Wire
Funds managed by affiliates of Apollo Global Management, LLC
(NYSE: APO) (together with its consolidated subsidiaries, “Apollo”)
and Post Oak Energy Capital, LP (“Post Oak”) announced today that
Double Eagle Energy Permian LLC (“Double Eagle” or “the Company”)
and Magnetar Capital (“Magnetar”) have entered into a definitive
agreement, wherein Magnetar has agreed to invest up to $450 million
of equity and delayed draw unsecured debt capital to support
additional Midland Basin acquisition opportunities and to
accelerate the Company’s operated drilling program.
Double Eagle Energy Permian LLC was recently formed through the
combination of Double Eagle Energy Lone Star LLC (“Double Eagle
Lone Star”) and Veritas Energy Partners Holdings LLC (“Veritas
Energy”). Double Eagle owns more than 60,000 core Midland Basin net
acres (over 70% 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. The Company has initiated
both an operated horizontal and vertical rig program and expects to
use the additional capital to increase operations.
John Sellers and Cody Campbell, Co-CEOs of Double Eagle,
commented, “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.”
Eric Scheyer, Partner and Head of Energy at Magnetar Capital,
added, “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.”
Vinson & Elkins LLP acted as legal advisor and Jefferies LLC
acted as financial advisor to Double Eagle, and Kirkland &
Ellis acted as legal advisor and Bank of America Merrill Lynch
acted as financial advisor to Magnetar Capital.
About Double Eagle Energy Permian
Double Eagle is a land-centered E&P company that invests in
and develops oil and gas resources in the Permian Basin. Double
Eagle was co-founded by Cody Campbell and John Sellers, and was the
second partnership between Apollo and the two co-founders.
About Post Oak Energy
Post Oak, which was established in 2006, is an energy-focused
private investor based in Houston, Texas. Its management team has
executive management experience and a broad network in the energy
business as well as significant expertise in equity investments,
operations, development, finance, acquisitions and divestitures.
The firm pursues private investments primarily in the upstream
sector of the oil and gas industry in North America and, to a
lesser extent, in oilfield service and related infrastructure. Post
Oak works in close partnership with operating management teams to
build businesses, accelerate growth and enhance shareholder value.
www.postoakenergy.com.
About Apollo Global Management, LLC
Apollo is a leading global alternative investment manager with
offices in New York, Los Angeles, Houston, Chicago, Bethesda,
Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi,
Singapore, Hong Kong and Shanghai. Apollo had assets under
management of approximately $189 billion as of September 30, 2016
in private equity, credit and real estate funds invested across a
core group of nine industries where Apollo has considerable
knowledge and resources. For more information about Apollo, please
visit www.agm.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161114006645/en/
For Double Eagle Energy Permian:Joshua Gregg,
817-928-3260ir@deeh.comorFor Post Oak Energy:Kelly Kimberly,
713-328-5151kkimberly@kimberlypublicaffairs.comorFor
Apollo:Investor Inquiries:Gary M. Stein, 212-822-0467Head of
Corporate Communicationsgstein@apollolp.comorMedia
Inquiries:Rubenstein Associates, Inc.Charles Zehren,
212-843-8590czehren@rubenstein.com
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