Post Oak Minerals V, an affiliate of Post Oak Energy Capital, has closed 10 transactions since the onset of 2024, including 24,000 net royalty acres from APA Corp. subsidiary Apache. (Source: Hart Energy, Post Oak Minerals)
Houston’s Post Oak Minerals V, an affiliate of Post Oak Energy Capital LP, has completed 10 acquisitions with a total value of more than $475 million since the beginning of 2024, primarily in the Permian Basin.
Post Oak Minerals V (POM V) acquired more than 28,400 net royalty acres (NRA) of mineral & royalty interests, with 27,400 NRA located in the Permian Basin and the remaining NRA located in the Eagle Ford and Haynesville shale trends, the company said in a July 29 press release.
Approximately 24,000 NRA (100% fee minerals) in the Midland Basin were acquired from APA Corp. subsidiary Apache and certain of its subsidiaries. The sellers of the other acquired assets include Hunt Oil Co. and other family offices and private individuals.
The acquired assets will be managed by Post Oak Minerals, the in-house mineral & royalty investment platform for Post Oak. Overall, Post Oak Minerals oversees more than 80,000 NRA of mineral & royalty interests, including the recent POM V acquisitions. About 50,000 NRA are in the Permian Basin with ownership held by multiple private institutional investment funds managed by Post Oak.
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“We are delighted to capture a rare opportunity to own a large-scale minerals position in the heart of the Permian Basin with substantial remaining undeveloped resource,” said Eric Madry, managing director of Post Oak Minerals. “These interests are in proven areas among the best geology and lowest breakeven development costs in the United States and are being actively developed by premier, well capitalized operators that are executing full pad development programs. We were able to move swiftly to capture these assets at an attractive risk-adjusted valuation due to our close collaboration with Post Oak as an in-house platform.”
Recent POM V acquisitions are continuation of Post Oak’s mineral and royalty investment strategy that the private equity firm began through its first fund in 2011, said Frost Cochran, managing director and founding partner of Post Oak.
“Permian Basin minerals has consistently proven to be an extraordinary asset class given the perpetual ownership of thousands of feet of economic stacked pay resource, providing multi-decade exposure to industry advances without the associated capital or operating expenditures,” Cochran said in the press release.
Greenhill & Co, Inc., a Mizuho affiliate, acted as exclusive financial adviser to Post Oak on the acquisition of Midland Basin minerals from Apache Corp. and certain of its subsidiaries.
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