- In addition to EnCap, other backers include Apollo and Magnetar Capital
- Based in Fort Worth, Texas, Double Eagle IV will focus on oil and gas assets in the Permian Basin while Tumbleweed IV will focus on royalty and mineral investments, also in the Permian Basin
- Vinson & Elkins LLP provided legal counsel to EnCap while Akin Gump Strauss Hauer & Field LLP was legal advisor to Double Eagle
EnCap Investments and Double Eagle have teamed up to form two companies, Double Eagle IV and Tumbleweed IV.
Collectively, the newly-formed companies have amassed over $1.7 billion in equity commitments led by EnCap, with minority investments from Apollo Natural Resource Partners, Magnetar Capital and Double Eagle management.
Double Eagle IV will primarily focus on investing in oil and gas properties in the Permian Basin and Tumbleweed IV will focus on royalty and mineral investments, also across the Permian Basin.
John Sellers and Cody Campbell will continue to serve as co-CEOs of Double Eagle. In a public statement, both were expressed considerable enthusiasm about the new partnership. In a public statement, they commented, “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.”
According to the news release announcing these two new companies, “Double Eagle has been one of the largest independent acquirers of oil and gas leasehold interests across Texas, the Rockies, and the Mid-Continent.”
EnCap engaged Vinson & Elkins LLP for legal counsel while Double Eagle engaged Akin Gump Strauss Hauer & Field LLP as their respective legal advisors.
Since 1988, EnCap Investments has been a provider of growth capital to the independent sector of the U.S. energy industry. According to EnCap, the firm has raised 22 institutional funds totalling approximately $38 billion.