TPH Partners has sold Midland, Texas-based portfolio company Storm Peak Energy. Storm Peak owns oil properties in Culberson County, Texas. Lantana Oil & Gas Partners Inc. and Kelly Hart & Hallman LLP advised Storm Peak on the asset sale. Details of the sale were not released.
TPH Partners is pleased to announce the sale of substantially all of the assets of its Midland, Texas-based portfolio company, Storm Peak Energy, LLC (Storm Peak) to a private company. These Permian Basin properties in Culberson County, Texas include 3,392 acres of Delaware Mountain Group producing leasehold and approximately 1,000 acres of deeper rights prospective for the Brushy Canyon, Avalon/Bone Spring and Wolfcamp horizons. Storm Peak acquired the Delaware Basin properties in February 2010 and, through an active workover and drilling program, increased daily oil production by more than 230 percent in less than two years.
“We and the Storm Peak management team are very pleased to provide our investors with an attractive realized return in a short period of time via the sale of Storm Peak’s assets, especially in light of the extreme market volatility we’ve witnessed over the period,” said George M. McCormick III, Managing Partner of TPH Partners. “One of our fundamental investment strategies is to seek opportunities that contain significant volumetric growth potential, and this realization reflects a successful execution of that strategy in the middle market portion of the upstream sector.”
Lantana Oil & Gas Partners, Inc. and Kelly Hart & Hallman LLP advised Storm Peak on the asset sale.
About TPH Partners:
TPH Partners is a Houston-based energy private equity group that makes middle-market equity investments in the upstream, midstream and oilfield services sectors of the energy industry, seeking attractive entry points into businesses that provide long-term growth potential. TPH Partners is the private equity business of Tudor, Pickering, Holt & Co., LLC, an integrated energy investment and merchant bank that provides high quality advice and services to institutional and corporate clients.