KKR Pays $306M For Energy Assets

KKR & Co. said it will buy some energy assets straddling parts of Texas and Oklahoma from WPX Energy for $306 million — the private equity firm’s latest acquisition of properties that have become cheaper due to weak natural gas prices, Reuters wrote Monday. The deal has been made through KKR Natural Resources, which is KKR’s partnership with Premier Natural Resources.

(Reuters) – KKR & Co said it will buy some energy assets straddling parts of Texas and Oklahoma from WPX Energy for $306 million — the private equity firm’s latest acquisition of properties that have become cheaper due to weak natural gas prices.

 

The deal has been made through KKR Natural Resources (KNR), which is KKR’s partnership with Premier Natural Resources, it said in a statement. KNR has bought more than $600 million of assets this year.

 

KKR said on Monday the assets to be bought from WPX comprise 27,000 net acres in North Central Texas and Eastern Oklahoma and 66,000 net acres in the Arkoma Basin.

 

Energy — shale fields in particular — is a major area of interest for KKR, director and partner Scott Nuttall said late last year. It constitutes about 4 percent of the firm’s investments.

 

KNR could buy more than $2 billion of additional properties over the next few years, with $1 billion of capital currently available for investment, KKR said in the statement.