Money is continuing to pour into potential Permian Basin growth and Double Eagle Energy Holdings III is again the benefactor, nabbing another $1 billion-plus from a frequent private equity (PE) partner to expand its West Texas portfolio.
Apollo Global Management LLC, which last summer agreed to back Fort Worth, TX-based Double Eagle Development LLC, is the primary sponsor of the Double Eagle III entity.
Co-CEOs John Sellers and Cody Campbell also led predecessor Double Eagle companies. Double Eagle Energy Permian LLC was sold last spring to Parsley Energy Inc.
“We are excited by the opportunity for Double Eagle to continue to pursue assets in the Permian Basin,” said Campbell. “With this additional support and capital, we have the clear opportunity to create a tremendous amount of value and look forward to working with our sponsor team in executing our operating plans.”
Sellers said besides leveraging the “land acquisition capabilities, we are focused on working with Permian operators to execute trades to drill extended lateral horizontal wells. We plan to have our first operated rig running in April of this year.”
PE-backed start-ups in the Permian and elsewhere in the U.S. onshore have continued unabated.
The Double Eagle commitment followed news Monday that Warburg Pincus has given Ridge Runner Resources LLC a $300 million line of equity to build a position in the Permian’s Delaware sub-basin.
Warburg has been one of the top backers of Permian opportunities. In late 2017, newly formed ATX Energy Partners, a successor to Brigham Resources, secured up to $780 million from a trio of PE lenders, including Warburg, to track resources in the Permian and Williston basins. Also in December, Chisholm Energy Holdings LLC, backed by Warburg, said it had an agreement to acquire undeveloped acreage in the Permian Basin.