EnCap Investments and the team behind the Double Eagle family of companies announced a major expansion of their strategic partnership with the formation of Double Eagle Energy Holdings V and Tumbleweed Royalty V, backed by $2.5 billion in committed equity.
Headquartered in Fort Worth, Double Eagle V will focus on investing in oil and gas properties across the Permian Basin, while Tumbleweed V will target royalty and mineral investments in multiple U.S. basins, with an emphasis on the Permian.
The new entities retain commitments from Double Eagle management, Elda River Capital Management, affiliates of Apollo Global Management, Inc., and other strategic institutional partners. John Sellers and Cody Campbell, co-founders of Double Eagle, will continue to serve as co-CEOs.
“We have enjoyed our partnership with EnCap and are pleased to expand the relationship,” Campbell and Sellers said in a joint statement. “With the financial strength of our partners, and the tremendous commercial and operational momentum we have built, we are well-equipped to confidently pursue even greater ambitions in the Permian Basin.”
In 2022, Double Eagle and EnCap Investments formed a partnership to create Double Eagle Energy Holdings IV and Tumbleweed Royalty IV. The new entities also received minority investments from Apollo Natural Resource funds, Magnetar Capital, and other strategic institutional partners.
Diamondback Energy in February announced a $4 billion cash-and-stock deal to acquire 40,000 acres of oil-rich in the Permian from Double Eagle IV Midco.
“Cody, John, and the entire Double Eagle team have unique relationships in the industry and continue to impress with their operational excellence and an outstanding track record,” EnCap managing partners Jason DeLorenzo and Doug Swanson said in a statement on continuing the relationship following the success of Double Eagle IV.
Founded in 1988, EnCap Investments has raised 25 institutional funds totaling approximately $47 billion. The Houston-based firm manages capital on behalf of more than 350 U.S. and international investors.