Blackstone seals $6bn shale exit

 The firm will sell oil and gas assets in southern Texas nearly three years after forming a joint venture with exploration company GeoSouthern Energy.   

The Blackstone Group will sell GeoSouthern Energy’s Eagle Ford assets in southern Texas to NYSE-listed Devon Energy for $6 billion, according to a statement. 

The firm formed a joint venture partnership with GeoSouthern in 2011 to accelerate the drilling and development in the Eagle Ford shale, investing from Blackstone’s $2.5 billion Energy Partners Fund and $16.7 billion Blackstone Capital Partners IV. The two vehicles have allocated more than $5 billion of equity to energy deals, having built a portfolio that includes Alta Energy, Kosmos Energy, OSUM Oil Sands and Royal Resources. The transaction is expected to close during the first quarter of 2014. 

The sale of GeoSouthern marks the largest domestic oil and gas transaction of 2013, Blackstone said in the statement. 

Since, 2011, GeoSouthern has increased its net production from 5,000 barrel of oil equivalent per day to 50,000 per day. Production is anticipated to continue growing at a compound annual growth rate of 25 percent over the next several years, the statement said. 

Blackstone Energy Partners, led by chief executive officer David Foley, has committed and invested more than $7.5 billion of equity in 25 energy transactions. The firm has more than $248 billion in total assets under management.