Black Bay Energy Capital LLC recently announced the closing of its oversubscribed second fund with total commitments of $210 million, exceeding its $200 million target.
“The Black Bay team is extremely grateful for the confidence placed in us by our investors. We believe that our focused approach within the underserved lower-middle market energy sector will generate attractive risk-adjusted returns for our Fund investors and portfolio company partners,” Michael LeBourgeois, managing partner at Black Bay, commented in a company release on May 11.
Black Bay is a private equity firm based in New Orleans focusing on investments in the North American energy sector requiring up to $30 million of equity capital. In particular, the firm said it invests in companies led by talented entrepreneurs offering proven, next-generation products and services that help improve economics, efficiency and safety for energy producers across the hydrocarbon value chain.
“Black Bay is solely focused on partnering with talented management teams that are bringing next-generation solutions to the energy industry,” said Guy Cook, partner at Black Bay. “Underinvestment in traditional forms of energy has limited the sources of capital for entrepreneurs with compelling businesses.”
To date, Black Bay has completed two investments from its second fund, Black Bay Energy II LP. These include:
- Piñon Midstream—a midstream services provider focused on the gathering, treatment, and redelivery of sour gas. Piñon removes and sequesters hydrogen sulfide and CO₂, unlocking constrained, prolific oil and gas resources in the eastern Delaware Basin.
- Advanced Industrial Devices (AID)—a provider of high-performance electric motor automation and control solutions to the energy and industrial sectors. AID’s offering includes highly engineered and customized variable frequency drive control systems for clients who are electrifying and instrumenting their compression, artificial lift, saltwater disposal and industrial pump operations.
“The energy industry is under pressure to increase shareholder value—but needs to do so in a more environmentally and socially responsible manner—and Black Bay is investing in companies that help the industry deliver on those objectives,” added Tom Ambrose, partner at Black Bay.
Latham & Watkins LLP, led by partner Edward D. Nelson, served as fund formation counsel. Black Bay did not engage a placement agent for formation of its second fund.
Recommended Reading
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
Tamboran, Falcon JV Plan Beetaloo Development Area of Up to 4.5MM Acres
2025-01-24 - A joint venture in the Beetalo Basin between Tamboran Resources Corp. and Falcon Oil & Gas could expand a strategic development spanning 4.52 million acres, Falcon said.
Blackstone Buys NatGas Plant in ‘Data Center Valley’ for $1B
2025-01-24 - Ares Management’s Potomac Energy Center, sited in Virginia near more than 130 data centers, is expected to see “significant further growth,” Blackstone Energy Transition Partners said.
Huddleston: Haynesville E&P Aethon Ready for LNG, AI and Even an IPO
2025-01-22 - Gordon Huddleston, president and partner of Aethon Energy, talks about well costs in the western Haynesville, prepping for LNG and AI power demand and the company’s readiness for an IPO— if the conditions are right.
E&P Highlights: Dec. 30, 2024
2024-12-30 - Here’s a roundup of the latest E&P headlines, including a substantial decline in methane emissions from the Permian Basin and progress toward a final investment decision on Energy Transfer’s Lake Charles LNG project.
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.