EnCap Investments L.P. and the team behind the Double Eagle family of companies have announced that they have formed a partnership to create Double Eagle Energy Holdings IV, LLC, and Tumbleweed Royalty IV, LLC.
The new entities have also received minority investments from Apollo Natural Resource funds, Magnetar Capital, and other strategic institutional partners.
According to a statement, Double Eagle IV, headquartered in Fort Worth, will primarily focus on investing in oil and gas properties in the Permian Basin. and Tumbleweed IV will focus on royalty and mineral investments across the Permian Basin.
Double Eagle IV was formed by the same management team that successfully led its predecessor companies, with John Sellers and Cody Campbell continuing to serve as co-chief executive officers. Double Eagle has been one of the largest independent acquirers of oil and gas leasehold interests across Texas, the Rockies, and the Mid-Continent.
“We are excited about this new partnership with EnCap and are thrilled to do business with a group of people who have been longtime personal friends,” say Campbell and Sellers in a joint statement. “Pairing EnCap with our longtime investors, Apollo and Magnetar, along with several large strategic institutions and our own personal capital, provides us with a unique strategic advantage.
“Together with the financial strength of our partnership, our track record of success, and our world-class operating team, we can confidently and aggressively pursue very large acquisitions while continuing to organically assemble smaller opportunities and undertake an ambitious development program."
Formation of this new company follows the recent successful sale of Double Eagle III Midco 2 LLC, wholly owned by DoublePoint Energy, LLC, to Pioneer Natural Resources Company (NYSE: PXD) for approximately $6.4 billion.
Double Eagle IV will pursue a similar strategy that led to the success of the predecessor companies, but on a considerably larger scale and with a more substantial upfront commitment from funds managed by EnCap, along with Apollo, Magnetar, and the Double Eagle management team.
Kyle Kafka, partner of EnCap Investments, says: “The Double Eagle team brings unique relationships and a proven track record of success in the industry. We are excited to partner with John, Cody, and the entire management team and look forward to building a substantial business together.”