Hedge fund Angelo Gordon & Co. LP aims to raise as much as $1.5 billion to buy the debt of distressed oil and gas companies, according to a person familiar with the matter and an investor presentation viewed by Reuters.
The U.S. shale boom, financed by access to cheap capital, is drying up as weak oil and gas prices and investors' reluctance to refinance debt has companies cutting production and some seeking protection from creditors. U.S. output is expected to fall as much as 2 million bbl/d this year.
The Angelo Gordon fund will be called AG Energy Credit Opportunities Fund IV LP and will seek to acquire distressed debt in the oil exploration and production, pipeline and services sectors, according to a presentation seen by Reuters.
RELATED:
Hedge Fund Angelo Gordon Buys Northern Oil & Gas Debt
Todd Dittmann, head of energy at the $38 billion company, will manage the fund, which will pursue senior secured loans and discounted reserve-based loans, the presentation showed.
Dittmann and an Angelo Gordon spokeswoman declined to comment.
If Angelo Gordon completes the fundraising, it would be the firm's second this year to target the debt of struggling companies. In February, it completed a $1.8 billion fundraising that had its initial closing in July 2019.
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
EQT to Cut Workforce 15% Following Close of Equitrans Acquisition
2024-10-02 - EQT Corp. closed its $5.5 billion all-stock buy of Equitrans Midstream Corp. on Sept. 22.
No Rush: Post-M&A Frenzy, Divestiture Market to Pick Up by 2025
2024-10-07 - Lenders with a variety of capital structures are poised to fund the upcoming portfolio rationalization in the post-consolidation era, bankers and deal advisers said at Hart Energy’s Energy Capital Conference.
Marathon Oil Expects ‘Mass Layoff’ After ConocoPhillips Deal Closes
2024-10-31 - Marathon Oil’s merger with ConocoPhillips, which is to close by year-end, will trigger a layoff of more than 500 Houston employees, according to a state regulatory filing.