“Oil & Gas Producer Raises $1B For Permian Basin Work”
Texas-based oil and gas production company Double Eagle Energy Holdings III LLC has raised more than $1 billion in equity commitments, which will go toward acquisition and development in the Permian Basin, the company said Monday.
Double Eagle III raised the capital with commitments from multiple investors that were anchored by a contribution from funds managed by Apollo Global Management LLC. Double Eagle III was formed in August as the third partnership between Double Eagle Development LLC and Apollo, with a focus on investing in oil and gas properties in the Permian Basin.
“We are excited by the opportunity for Double Eagle to continue to pursue assets in the Permian Basin,” Double Eagle Co-CEO Cody Campbell said in a statement. “With this additional support and capital, we have the clear opportunity to create a tremendous amount of value and look forward to working with our sponsor team in executing our operating plans.”
The company was formed by the same management team that led predecessor company Double Eagle Energy Permian LLC, which Parsley Energy Inc. bought for $2.8 billion in 2017 to add anchorage to its Midland Basin portfolio.
According to a company statement, Double Eagle Energy Permian has developed 72,000 acres in the Midland Basin, producing 3,600 barrels of crude oil per day.
Double Eagle III will pursue a similar strategy but on a larger scale, the company said.
“In addition to leveraging our land acquisition capabilities, we are focused on working with Permian operators to execute trades to drill extended lateral horizontal wells,” Double Eagle Co-CEO John Sellers said in a statement. “We plan to have our first operated rig running in April of this year.”
Double Eagle III was represented by Thompson & Knight LLP.