Houston-based Energy & Minerals Group has invested $500 million in American Energy Minerals Holdings, an affiliate of American Energy Partners.
Energy & Minerals Group was unavailable for comment on the investment at press time.
The investment represents a $350 million equity commitment, along with additional equity provided by American Energy Minerals Holdings.
With the investment, the firm plans to acquire 28,000 net mineral acres and 29,000 acres of overriding royalty interests (ORRIs) Utica, Marcellus, Woodford and Permian Basin.
The announcement comes as energy prices continue to plummet creating lower prices at the pump for consumers, while also adding further instability to currencies like the Russian ruble which are heavily dependent on energy prices for stability.
Energy & Minerals Group is a spin out of NGP Energy Capital Management, and raised $1.2 billion for its latest private equity fund in January, according to Private Equity International’s research and analytics division. The fund was slightly smaller than EMG Fund II,which closed on $2.2 billion in 2012.
Known investors Fund III include the Pennsylvania Public School Employees’ Retirement System and the San Diego County Retirement Association.
Energy & Minerals Group is headed up by John Raymond, previously head of the midstream investment group at NGP. The firm typically makes equity investments of $150 million to $400 million. EMG already has significant investments in Ohio’s Utica Shale development, and led a $1.7 billion funding round for American Energy Partners in 2012. American Energy Partners is led by fracking pioneer Aubrey McClendon.