Ensign Natural Resources LLC, which is backed by Warburg Pincus and Kayne Anderson, has acquired Eagle Ford acreage in South Texas from Pioneer Natural Resources USA Inc. No financial terms were disclosed. BMO Capital Markets was financial adviser to Ensign while Kirkland & Ellis LLP provided legal counsel.
HOUSTON, May 7, 2019 /PRNewswire/ — Ensign Natural Resources LLC (“Ensign” or the “Company”), an exploration and production company focused on acquiring, developing and producing U.S. unconventional resources, today announced the purchase of Eagle Ford acreage in South Texas from Pioneer Natural Resources USA, Inc. The transaction includes approximately 59,000 net acres in Bee, DeWitt, Karnes, Lavaca and Live Oak Counties and current net production of approximately 14,400 barrels of oil equivalent per day.
“We are excited to announce our first acquisition. These assets include both meaningful existing production and years of attractive drilling inventory,” said Brett Pennington, President and Chief Executive Officer of Ensign. “We will continue to evaluate additional acquisition opportunities in the Eagle Ford and look forward to working with our equity sponsors to create value.”
Ensign was formed in late 2017 in partnership with Warburg Pincus, a private equity firm focused on growth investing. As part of this transaction, the Company has also secured an equity commitment from the Kayne Private Energy Income Funds, an investment platform dedicated to partnering with high caliber management teams to acquire and develop large producing oil and gas assets in North America.
BMO Capital Markets acted as exclusive financial advisor and Kirkland & Ellis LLP acted as legal counsel to Ensign. In addition, BMO Capital Markets, along with Citigroup Global Markets Inc., provided an underwritten commitment for debt financing as part of the acquisition.
About Ensign Natural Resources
The Company is an exploration and production company operating in the Eagle Ford Shale (“EFS”) in South Texas. The Company is focused on making disciplined investments, continuously improving and applying modern technology. CEO Brett Pennington, the former SVP of Onshore at Murphy Oil, is joined by a management team experienced in finding, developing and exploiting unconventional assets. Ensign is funded through Warburg Pincus and the Kayne Private Energy Income Funds platform.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $58 billion in private equity assets under management. The firm’s active portfolio of more than 180 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 18 private equity funds, which have invested more than $74 billion in over 860 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information please visit www.warburgpincus.com.
About Kayne Anderson
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on energy, infrastructure, real estate, credit, and growth equity. Kayne’s investment philosophy is to pursue niches, with an emphasis on cash flow, where its knowledge and sourcing advantages enable it to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for its investors. Kayne manages approximately $30 billion in assets for institutional investors, family offices, high net worth and retail clients and employs 350 professionals in five offices across the U.S.
The Kayne Private Energy Income Funds platform is part of Kayne’s successful energy private equity practice that has raised over $8 billion since 1998. The strategy was formed in late 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America. For more information please visit www.kaynecapital.com.