News
Venado Oil & Gas and KKR Acquire Eagle Ford Oil Assets
July 2nd, 2018
AUSTIN & HOUSTON, Texas, July 2, 2018 – Today, affiliates of Venado Oil and Gas, LLC (“Venado”) and KKR announced that they have closed on an acquisition of operated assets located in the Eagle Ford oil window of South Texas. The assets acquired by Venado and KKR include current oil production from 22 producing wells and significant future resource development potential across approximately 23,000 net acres immediately adjacent to existing operated assets held by Venado and KKR in Atascosa and Frio counties. During the second quarter of 2018, the assets produced approximately 4,500 net barrels of oil equivalent per day (74% oil, 11% natural gas and 15% NGLs).
Venado CEO Scott Garrick stated, “These assets are a natural addition to our existing operated assets and considerably increase our future drilling inventory. This acquisition is a continuation of our strategy begun in late 2016 to consolidate proven assets in the Eagle Ford. This is a prime example of the Venado and KKR partnership using our extensive experience in the Eagle Ford to capture additional high-quality assets, where we have identified multiple opportunities to enhance long-term value for our stakeholders.”
David Rockecharlie, Member and Head of Energy Real Assets for KKR, commented, “This investment marks our third asset acquisition in partnership with the Venado team in less than eighteen months, underlining our commitment to capitalizing on the attractive market opportunity we see in the U.S. oil and gas sector at this point in the cycle. We continue to employ our differentiated strategy, which seeks to generate strong investment returns and free cash flow through superior technical and operational execution, as well as disciplined financial and risk management.”
As of the closing date, the Venado and KKR partnership manages an asset position comprising approximately 136,000 net acres producing approximately 43,000 barrels of oil equivalent per day from the Eagle Ford trend of South Texas.
The Venado and KKR asset partnership is principally funded by KKR’s Energy Income and Growth Fund I (“EIGF”). KKR manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States and has made thirteen investments in the Eagle Ford to date.
About Venado Oil and Gas
Venado Oil & Gas is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Austin, Texas, its primary objective is to build and operate a portfolio of producing oil and gas wells and drilling locations in the Eagle Ford Shale. For additional information about Venado Oil & Gas, please visit www.vogllc.com.
About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
Media Contacts:
KKR
Kristi Huller or Cara Kleiman Major, + 1-212-750-8300
media@kkr.com
Venado Oil & Gas and KKR Acquire Cabot Eagle Ford Assets
March 19th, 2018
Venado Oil & Gas and KKR Acquire Cabot Eagle Ford Assets
AUSTIN & HOUSTON, Texas, March 19, 2018 -- Venado Oil and Gas, LLC (“Venado”) and KKR today announced that they have closed on the acquisition of the operated and non-operated Eagle Ford assets of Cabot Oil & Gas Corporation (NYSE: COG) for a purchase price of $765 million, subject to customary closing adjustments. Venado and KKR acquired interests which include approximately 303 gross/203 net wells and 74,400 net acres situated primarily in the Eagle Ford oil window of South Texas (Atascosa, Frio, and LaSalle counties). During the fourth quarter of 2017, the assets produced 15,656 net barrels of oil equivalent per day (85% oil, 5% natural gas and 10% NGLs).
Venado CEO Scott Garrick stated, “The Cabot acquisition is a high-quality asset positioned in the oil fairway of the Eagle Ford. The combination of a strong production base and an attractive inventory of future drilling locations fit well with our disciplined business model of operating with free cash flow while supporting long term growth. We look forward to implementing our leading edge drilling and completion designs in one of the best producing basins in the country.”
David Rockecharlie, Member and Head of Energy Real Assets for KKR, commented, “We are excited to continue to build a first-in-class Eagle Ford asset position alongside Scott and his team. We continue to see an attractive market opportunity throughout the Eagle Ford trend and believe we are well positioned for future growth and long-term value creation through strong operational execution.”
As of the closing date, the Venado and KKR partnership will hold interests in 112,000 net acres, producing over 43,000 barrels of oil equivalent per day from the Eagle Ford trend of South Texas. Garrick added, “I am very pleased about what the Venado and KKR partnership has been able to accomplish in a short period of time. We will continue to execute on our Eagle Ford pure-play strategy to consolidate premier liquids-rich assets.”
The Venado partnership is principally funded by KKR’s Energy Income and Growth Fund I (“EIGF”). EIGF manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States. KKR has made more than ten investments in the Eagle Ford to date.
About Venado Oil and Gas
Venado Oil & Gas is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Austin, Texas, its primary objective is to build and operate a portfolio of producing oil and gas wells and drilling locations in the Eagle Ford Shale. For additional information about Venado Oil & Gas, please visit www.vogllc.com.
About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
Media Contacts:
KKR
Kristi Huller or Cara Kleiman Major, + 1-212-750-8300
VENADO OIL & GAS ACQUIRES SM ENERGY NON-OPERATED EAGLE FORD ASSETS
March 28th, 2017
AUSTIN, Texas - Venado Oil and Gas, LLC (“Venado”) today announced that it has closed on the acquisition of non-operated assets of SM Energy (NYSE: SM) in the Eagle Ford for a purchase price of $800 million. Venado EF L.P., a subsidiary of Venado Oil & Gas, LLC, acquired the interest which includes approximately 37,500 net acres in the Maverick Basin/Eagle Ford area of South Texas and a 12.5% interest in the Springfield Gathering System. In the third quarter of 2016, these assets produced approximately 27,260 net Boe per day (33% oil, 33% natural gas and 34% NGLs.)
Venado is led by CEO Scott Garrick and a core team of individuals who have operated in the Eagle Ford since the play’s inception. Venado intends to apply its expertise to acquire and enhance Eagle Ford assets through a focus on operational efficiency, technical innovation and strong community relations.
Venado is principally funded by KKR.Together, Venado and KKR seek to build a large scale, long-term business by consolidating proven assets in the Eagle Ford Shale of South Texas.
Scott Garrick, CEO of Venado, stated, "This acquisition is a great first step for our partnership with KKR and our collective strategy to build a valuable Eagle Ford business. The SM Asset is a large producing asset with attractive future drilling opportunities which aligns well with our strategy. We will now turn our focus to building a strong operated position elsewhere in the Eagle Ford.”
About Venado Oil and Gas
Venado Oil & Gas is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Austin, Texas, its primary objective is to build and operate a portfolio of producing oil and gas wells and drilling locations in the Eagle Ford Shale. For additional information about Venado Oil & Gas, please visit www.vogllc.com.
KKR and Venado Form Partnership to Pursue Oil and Gas Investments in Eagle Ford Shale
September 29th, 2016
HOUSTON & AUSTIN, Texas--(BUSINESS WIRE)--KKR and Venado Oil and Gas, LLC ("Venado") today announced a partnership to consolidate proven assets in the Eagle Ford Shale of South Texas. The partnership is principally funded by KKR’s Energy Income and Growth Fund I (“EIGF”).
Venado is led by CEO Scott Garrick and a core team of individuals who have operated in the Eagle Ford since the play’s inception. Venado intends to apply its expertise to acquire and enhance Eagle Ford assets through a focus on operational efficiency, technical innovation and strong community relations.
David Rockecharlie, Member and Head of Energy Real Assets (“ERA”) for KKR, stated, "We have known Scott for many years and believe he and his team have the experience and differentiated business approach necessary to acquire attractive Eagle Ford assets and enhance long-term value through superior technical and operational execution. KKR has a long history investing in the Eagle Ford, and we look forward to expanding our existing Eagle Ford asset position in partnership with Venado.”
Scott Garrick, CEO of Venado, added, "We are excited to partner with KKR in the Eagle Ford, where we both see the opportunity to build a large scale, long-term business. Both Venado’s management and KKR have been active in the Eagle Ford since the early phase of development, and we share the same vision of the next phase of its evolution. This provides an ideal foundation for a strong partnership.”
Venado’s business plan is a natural fit within KKR ERA’s asset-based investment strategy that provides flexible capital solutions to upstream operators. KKR has made more than ten investments in the Eagle Ford to date. KKR ERA manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States, including developments in the Eagle Ford, Bakken, Barnett, DJ, Haynesville, Marcellus, Permian and Utica.
About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.
About Venado Oil and Gas
Venado Oil & Gas is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Austin, Texas, its primary objective is to build and operate a portfolio of producing oil and gas wells and drilling locations in the Eagle Ford Shale. For additional information about Venado Oil & Gas, please visit www.vogllc.com.
Contacts
KKR
Cara Kleiman, +1 212-519-1619
media@kkr.com