Backed by a $500 million private equity (PE) commitment, Sierra Energy Holdings LLC plans to pursue mineral and royalty stakes in the Lower 48.

The firm was created by Providence Energy Ltd. and funds managed by Oaktree Capital Management LP.

Privately held Providence units own and/or manage interests in nearly two million gross acres across the country. It also has stakes in more than 10,000 producing oil and gas wells. 

Oaktree, with a deep oil and gas portfolio, specializes in alternative investment strategies.

COO Phil Ream of Providence Energy Management LLC is to lead Sierra’s efforts. 

Providence’s “decades of industry experience and knowledge, combined with the strong financial backing and support from Oaktree,” should enable Sierra “to quickly...