Fort Worth-based Pegasus Resources LLC has received a $300 million equity commitment from EnCap Investments LP, the company said on Dec. 11.
Pegasus, a mineral and royalty company, will focus on acquiring and managing mineral and royalty properties located in the core of established and rapidly emerging resource plays, primarily the Permian Basin.
Pegasus is led by CEO George M. Young Jr., who has spent more than 35 years in the energy industry, most recently as CEO of Silverback Exploration LLC.
Pegasus’ Will O. Rodgers, president and COO most recently served as vice president of Collins and Young LLC and vice president of Wolf Exploration LLC. CFO Lynn Frank most recently served as director of finance for Black Stone Minerals LP (NYSE: BSM).
“Our team has spent years working together and has a proven track record of successful collaboration and value creation,” Young said. “Our plan is to leverage our extensive network of energy industry relationships, coupled with EnCap’s financial strength and expertise, to assemble an attractive portfolio of high-return properties during an advantageous point in the price cycle.”
“We have already seen a significant amount of deal flow and look forward to continuing to source, negotiate and close mineral acquisitions,” Young added.
“We have worked with members of the Pegasus team for many years,” David Miller, EnCap’s co-founder and managing partner, said. “They have a proven track record of value creation in the oil and gas business, and we look forward to continuing our successful partnership with them.”
The Fort Worth office of Kelly Hart & Hallman LLP acted as legal advisors to Pegasus. Thompson & Knight LLP served as legal counsel to EnCap.
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