Private equity power broker Riverstone Holdings LLC announced Monday that it has made an investment in Three Rivers Operating Co. LLC, which in turn has signed an agreement to buy several assets in the Permian Basin of West Texas from Meritage Energy Company LLC.

Although the financial terms for both transactions were not disclosed, Three Rivers plans to buy 15,000 net acres with a current production of approximately 1,900 boe/d from Meritage. The acreage is located in Dawson, Glasscock, Howard, Martin and Upton counties, TX.

In May, Three Rivers sold 310,000 gross (200,000 net) acres to Concho Resources Inc. for $1 billion (see Shale Daily, May 15). Those assets included estimated proved reserves of about 58 million boe (50% oil and 55% proved developed) as reported on April 1, with an estimated net production of 7,000 boe/d.

Meanwhile, Riverstone and Meritage have already partnered twice this year, with the former investing in the latter’s Meritage I and II plans (see Shale Daily, July 20; March 16).

Meritage I was formed in 2009 and initially funded Eagle Ford Shale opportunities, including the Eagle Ford Escondido Gathering System and the Cuervo Creek Gathering System, two assets purchased by Howard Energy Partners in April. Riverstone then invested $500 million in the Meritage II partnership, an effort to pursue new natural gas liquids midstream opportunities.

“We are excited to continue our successful relationship with Riverstone and appreciate their confidence in our team and business plan,” said Three Rivers CEO Mike Wichterich. “The Meritage assets will provide a strong foundation for [us] as we continue to seek attractive new opportunities to expand our Permian position over time.”

Pierre Lapeyre and David Leuschen, co-founders of Riverstone, echoed that sentiment. “This investment exemplifies [our] strategy of repartnering with proven management teams with deep, basin-focused operating expertise,” they said.

Riverstone has raised more than $22 billion in equity capital using seven investment funds and co-investments. The company conducts buyout and growth capital investments in the midstream, exploration and production, oilfield services, power and renewable sectors of the energy industry. To date the firm has committed $18.9 billion to 88 investments in North America, Latin America, Europe and Asia.