Kohlberg Kravis Roberts has acquired a number of properties in Texas’ Barnett Shale region from ConocoPhillips.
The Barnett Shale assets purchased by KKR contain 93 billion cubic feet equivalent of total proved resources, based on a third party estimate, of which more than 90 percent are “proved developed producing” (PDP).
The deal marks the second investment made by KKR Natural Resources, the partnership between KKR and Premier Natural Resources, following the $40 million acquisition of Southeast Texas oil and gas assets in November 2010.
KKR partnered with Premier Natural Resources, an oil and gas company founded in 2006 by former executives of Vintage Petroleum, in February 2010 to pursue investments in North American oil and gas properties.
“With a high PDP reserve component in a well known reservoir, these assets are precisely the types of properties KKR Natural Resources was designed to pursue,” senior member of KKR’s Energy and Infrastructure business Jonathan Smidt said in a statement. Smidt added that the firm will continue to pursue additional acquisition opportunities for oil and gas properties in North America.
KKR Natural Resources is an oil and gas fund within the firm’s broader energy group. The amount KKR has raised for the fund could not be determined at press time, but the firm had collected at least $257 million as of 30 June 2010.
KKR’s energy-related investment team has kept busy over the past year. Last month, KKR purchased half of El Paso Midstream Group’s midstream infrastructure assets in Utah for $125 million. KKR and El Paso have an oil and gas joint venture worth roughly $625 million.
In June 2010 KKR’s energy holdings grabbed headlines with the $4.7 billion sale of East Resources to Royal Dutch Shell, netting the private equity firm a handsome return.