Double Eagle Energy Co-CEOs Cody Campbell and John Sellers. (Source: Hart Energy)
Double Eagle Energy Holdings IV LLC has gained additional equity backing from EnCap Investments LP and established a reserve-based lending (RBL) facility, according to a Jan. 29 press release.
Double Eagle and Tumbleweed Royalty IV LLC’s capital has been extended to $2.3 billion, the two companies and EnCap said in the release. The expanded capital will accelerate Double Eagle’s core strategy of acquiring and developing top-tier, accretive drilling opportunities in the Permian Basin.
The upsized equity commitment and RBL come as Double Eagle ramps up its development pace, including recently adding two additional drilling rigs.
The company will continue running four rigs for the foreseeable future with a potential fifth rig joining later this year, Cody Campbell and John Sellers, Double Eagle’s co-chief executive officers of Double Eagle, said in the Jan. 29 press release.
“We are now in a position to execute on a robust development plan while maintaining the ability to expand our footprint throughout the Permian,” they said.
In June, Double Eagle and Tumbleweed received backing from EnCap as well as minority investments from Apollo Global Management LLC, Magnetar Capital and other strategic institutional partners totaling more than $1.7 billion.
More recently, Double Eagle Energy CFO Joshua A. Gregg said in November that Double Eagle’s partnership could have around 25,000 net acres by the end of 2022.
“We have close to $2 billion of equity committed between our sponsors and our management team, of which the management is putting in $150 million,” Gregg said at the Hart Energy Executive Oil Conference.
The RBL, established by JP Morgan Chase Bank with Citibank, PNC Bank and RBC Capital Markets acting as joint lead arrangers and joint bookrunners, will enhance Double Eagle’s ability to pursue high-quality assets and increase development pace, the
“We are also pleased to have established our RBL facility with four great banks,” Campbell and Sellers said. “We appreciate the support of our strategic partners and look forward to continuing these legacy relationships from previous Double Eagle iterations.”
Jason DeLorenzo, EnCap managing partner, said the private-equity firm is “pleased to show our continued support of Double Eagle through this commitment expansion.”
“Since our partnership began less than a year ago, the team at Double Eagle has been highly successful in re-establishing themselves as a premier acquirer and developer of assets,” DeLorenzo said. “We are excited to continue building this business together with them.”
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