Private equity (PE) giant Apollo Global Management LLC is teaming up again with Double Eagle Development LLC to create a Permian Basin-focused explorer.
Double Eagle Energy Holdings III LLC, headquartered in Fort Worth, TX, primarily will be on the lookout for opportunities in West Texas. The new company was formed by co-CEOs John Sellers and Cody Campbell, the same management team that has led predecessor Double Eagle companies and who also manage Double Eagle Development.
“We are excited to have the opportunity to work once again with Apollo,” Campbell said. “The continued strong relationships with their team, paired with their funds’ financial strength and track record of success, allow us to aggressively pursue larger and more numerous opportunities in the most prolific basin in North America.”
Formation of the latest company follows the recent sale of Double Eagle Energy Permian LLC to Parsley Energy Inc. for $2.8 billion. The company, dubbed Double Eagle II, had accumulated 72,000 net acres in the Permian’s Midland sub-basin, with 3,600 boe/d of production and 3,300 net horizontal drilling locations.
Double Eagle III is pursuing a similar strategy, “but on a significantly larger scale and with a more substantial upfront commitment from funds managed by Apollo, along with the management team,” said the partners.
Apollo and Double Eagle partnered in 2013 to develop oil and gas properties in Oklahoma. Apollo’s Greg Beard, head of natural resources, said the Double Eagle team was “a great example of Apollo’s focus on working with best-in-class teams and providing them with significant long-term capital and support.”
The PE deal was the second of the day announced on Tuesday. Post Oak Energy Capital LPagreed to commit $100 million to Sierra EF LP, a subsidiary of Sierra Resources LLC, to fund development in the Eagle Ford Shale’s dry natural gas window in South Texas.