A fund managed by Kayne Anderson Capital Advisors LP has provided an initial investment of $100 million in a Houston-based startup looking to provide more capital to exploration and production companies as equity markets sour on the upstream sector.
With funds from its management team, the newly formed Indianola Energy LLC hopes to help producers earn more from undeveloped acreage across North America as capital flees from the sector over debt and lackluster returns.
“As the market has shifted to placing a preference on living within cash flow, we believe Indianola’s strategy is helpful to the industry today by providing creative solutions to offer value for non-producing assets in highly proven basins,” said CEO Chapman Amend. “Indianola will seek to implement this strategy through both outright acquisitions and partnership structures designed to accelerate value for operators.”
Chapman, who started his career at El Paso E&P, went on to build two private producers at Millennial Energy Partners and Stonegate Production Company with a focus on the Midcontinent and Eagle Ford Shale of South Texas.
Todd Burgamy is also a partner in Indianola. He formerly served as senior vice president of the energy private equity group at Kayne Anderson, where he focused on evaluating upstream and midstream investments.
The management team said it can provide experience along with “creative structuring” to help producers generate more value for investors. Kayne Anderson Managing Director Patrick Lissonet said Indianola’s business model is well-suited to “capture compelling opportunities” in today’s more cautious environment.