Ares Management Announces Formation of Development Capital Resources
April 03 2017 - 6:30AM
Business Wire
New Oil & Gas Company Provides Development
Capital to North American E&P Operators
Ares Management, L.P. (NYSE:ARES) announced the formation of
Development Capital Resources (DCR), an oil and gas company focused
on providing development capital to North American exploration and
production operators. Led by Ronnie Scott and Matt Loreman and
backed by funds managed by Ares Management, DCR will identify
opportunities to partner with existing operators throughout North
America to help them accelerate growth through the development of
their assets.
“The formation of DCR is exciting because it provides an
opportunity to participate alongside some highly-respected
operators across a variety of oil and gas basins in the U.S. by
providing them growth capital,” commented Ronnie Scott, President
of DCR. “There is a demand for this type of capital, and we
anticipate significant interest from operators. We have a
substantial amount of capital available to deploy around a variety
of similarly-styled investments including but not limited to
drilling joint ventures, non-operated working interests, and
royalty participation.”
“We are excited to continue our longstanding relationship with
the DCR principals, Ronnie and Matt,” said Nate Walton, Partner in
the Ares’ Private Equity Group. “DCR expands Ares’ participation
across the capital spectrum and is a continuation of Ares’ focus on
being among the most flexible capital providers in the energy
industry. We are increasingly finding that a single equity or debt
solution does not meet every operator’s needs, so the establishment
of the DCR platform gives Ares another avenue to provide
competitive capital solutions. We are working with DCR to
aggressively identify additional opportunities for investment and
are pleased that DCR has participated in two significant joint
ventures within their first ninety days of operation.”
DCR also announced that it has entered into a $300 million
drilling partnership with Endeavor Energy Resources, a Midland,
Texas-based operator with expertise in the development of Wolfcamp
horizontal wells. DCR will fund the majority of the capital
required and will participate as a non-operator to finance and
develop identified locations. Upon achieving an agreed upon return,
DCR’s working interest will decrease during the operations phase of
the drilling joint venture.
In addition, DCR announced a second, similar transaction with a
non-Permian operator in which DCR will fund approximately $150
million in a drilling joint venture.
“The Endeavor program was of interest because it provided an
opportunity to participate alongside a highly-respected operator in
one of the premier basins in the U.S.,” said Mr. Scott. “Endeavor’s
ability to identify development locations and then quickly begin
implementation of the program was important to us. Rather than
begin with a capital commitment spread across many years and
multiple prospects, the parties involved in the project were
interested in drilling known locations at a reasonable pace. This
joint venture is off to a rapid start with two drilling rigs in
operation. In the same way, the second transaction allowed us to
quickly deploy capital as it too is now in progress.”
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $99 billion of assets
under management as of December 31, 2016, including approximately
$3.6 billion of AUM pro forma for Ares Capital Corporation’s
acquisition of American Capital, Ltd., which closed on January 3,
2017, and more than 15 offices in the United States, Europe and
Asia. Since its inception in 1997, Ares has adhered to a
disciplined investment philosophy that focuses on delivering strong
risk-adjusted investment returns throughout market cycles. Ares
believes each of its three distinct but complementary investment
groups in Credit, Private Equity and Real Estate is a market leader
based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits
from being part of the greater whole. For more information, visit
www.aresmgmt.com.
About Development Capital Resources
Development Capital Resources L.P. is an oil & gas company
focused on providing development capital to North-American E&P
operators. Development Capital Resources is headquartered in
Houston, Texas.
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version on businesswire.com: http://www.businesswire.com/news/home/20170403005404/en/
Media:Mendel CommunicationsBill Mendel,
212-397-1030bill@mendelcommunications.comorInvestors:Ares
Management, L.P.Carl Drake, 800-340-6497cdrake@aresmgmt.com
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