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
Chevron, Brightmark Mark Milestone with First Gas at 10 RNG Plants
2025-01-16 - Chevron and Brightmark Fund Holdings' facilities in Iowa, Michigan, Ohio, South Dakota and Wisconsin are producing RNG using biogas from dairy livestock.
California Resources Advances California’s First CCS Project
2025-01-06 - California Resources Corp. will invest between $14 million and $18 million to capture the CO2, the company said in a news release.
Despite Growth of CCS Projects, Profitability Remains Elusive
2024-12-04 - While costs are declining, CCS technologies remain expensive, with EOR and tax incentives spurring projects to capture and store CO₂.
Carbon TerraVault Receives California’s First Class VI Permits from EPA
2024-12-31 - The Environmental Protection Agency granted California Resources Corp.’s Carbon TerraVault Class VI well permits for the underground injection and storage of CO2.
BKV Reaches FID, Forms Midstream Partnership for Eagle Ford CCS Project
2025-02-13 - If all required permits are secured, BKV’s CCS project in the Eagle Ford Shale will begin full operations in first-quarter 2026, the Barnett natural gas producer says.
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.