Houston-based energy investment firm Kohlberg Kravis Roberts & Co. LP and Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) have formed a partnership to invest in mineral interests and overriding royalty interests in key U.S. oil and gas basins.
KKR and Chesapeake will make an initial combined $250-million commitment to the partnership. Chesapeake will contribute 10% of the total commitment and will receive a promoted ownership in the partnership. Both companies will jointly oversee the partnership while Chesapeake will source, acquire and manage the royalty investment opportu- nities. KKR director Robert Antablin said, “Driven predominantly by the recent advancements in unconventional oil and gas technology, we continue to see attractive opportunities to invest behind the domestic exploration and production of oil and gas.
“Royalties represent an important extension of this opportunity set and offer an attractive risk-reward for our investors in the current environment.”
Chesapeake has acquired approximately $900 million in royalties over the past 10 years, according to chief executive Aubrey K. McClendon, and will accelerate the pace of royalties acquisition with this partnership.
KKR is making the investment through its affiliates and KKR Financial Holdings LLC.
Recommended Reading
Energy’s Election Stakes: Regulations, Bureaucracy, Permitting
2024-10-18 - Oil and Gas Investor assembled a group of seven oil and gas executives, policy advocates and other experts to talk about what’s really at stake in the November election and the many challenges facing the energy sector, regardless of who wins.
Private Midstream Executives: More M&A, More Demand, More Gas Pricing Woes
2024-10-17 - Private midstream CEOs discuss the growth, opportunities and challenges that lie ahead.
EPIC Crude Completes Refinancing Amid Permian Pipeline Expansion
2024-10-16 - The refinancing comes at the heels of Diamondback and Kinetik Holdings acquiring stake in EPIC’s 800-mile crude pipeline, which runs from the Permian Basin to the Gulf Coast.
Howard: The Implications of ONEOK's M&A Binge
2024-10-09 - ONEOK’s M&A binge has propelled it to near the top of the sector. With so much midstream consolidation, what are its implications?
As Midstream Wobbles on IRA and ESG, a New Trend Opens Up for Sector
2024-10-08 - Enthusiasm for the Inflation Reduction Act (IRA) and ESG in the midstream sector is waning. Players are turning to a new trend—asset-backed securitization.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.