Silver Hill Energy Partners Closes $1.02 Billion Fund

Silver Hill Energy Partners LP closed the franchise’s third partnership and first institutional private equity fund representing total capital commitments of $1.02 billion, according to a recent release from the Dallas-based firm.

“Through our direct partnership with like-minded institutional partners, we are uniquely positioned to make rapid decisions as attractive oil and gas assets become available for acquisition,” commented Silver Hill Founder, President and CEO Kyle D. Miller in the release on Sept. 21.

Silver Hill Energy Partners was formed in 2011 with a focus on the direct ownership and operation of oil, natural gas and related infrastructure assets. The firm’s latest partnership, Silver Hill Energy Partners III LP, formed Silver Hill Energy Partners III, LLC, Silver Hill III Midstream, LLC and other regional affiliates, which is “focused on the direct acquisition and development of operated onshore oil, natural gas and related infrastructure assets in premier basins across the U.S.,” the firm’s release said.

“We have a tenured, multi-disciplinary team of leaders who have experience building and managing large-scale oil and gas companies; operating and developing oil and gas assets; and sourcing, evaluating and underwriting oil and gas investments,” Miller added.

“Through our direct partnership with like-minded institutional partners, we are uniquely positioned to make rapid decisions as attractive oil and gas assets become available for acquisition.”—Kyle D. Miller, Silver Hill Energy Partners LP

The formation of Silver Hill III followed the successful merger of Silver Hill I and II’s upstream assets into RSP Permian in 2017 for $2.5 billion in cash and stock. RSP Permian later sold to Concho Resources, which has since been acquired by ConocoPhillips Co. in a $13.3 billion transaction in early 2021.

Today, after five upstream acquisitions across the Haynesville Shale and South Texas since August 2021 and significant subsequent development activity, Silver Hill III’s asset portfolio consists of roughly 250 MMcf/d (net) of dry natural gas production from 75 producing wells and approximately 150 gross drilling locations across approximately 30,000 net acres prospective for the Haynesville, Eagle Ford and Austin Chalk formations.

Silver Hill III is currently running three operated rigs in the Haynesville Shale and South Texas while its working interest partners operate a fourth rig in the Haynesville. In addition to its upstream activity, Silver Hill III is actively developing meaningful new midstream infrastructure projects in both the Haynesville and South Texas, the firm’s release noted.

“I particularly want to thank our partners for providing their full support as we continue to grow this strong franchise with Silver Hill III,” Miller said. “Our goal, as always, is to generate compelling risk-adjusted returns and outcomes for all of our stakeholders, including our investing partners, the communities in which we operate and the landowners, employees and contractors we support.”

Aviditi Financial LLC and Shearman & Sterling LLP served as Silver Hill’s placement agent and legal counsel, respectively, during the fundraising process for Silver Hill Energy Partners III LP.