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Fort Worth drillers Double Eagle Lone Star, Veritas Energy merging

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Written by Steve Kaskovich

Click HERE to Read the Article by the Publisher.


Two Fort Worth oil companies with positions in the Permian’s Midland Basin in West Texas are merging.

Double Eagle Lone Star LLC, run by Cody Campbell and John Sellers, and Veritas Energy Partners Holdings LLC, operated by Hollis Sullivan, have agreed to merge and form Double Eagle Energy Permian LLC.

Each was backed by private-equity money: Apollo Global Management had invested in Double Eagle in 2013, and Post Oak Energy Capital, a Houston-based investor, had put money behind Veritas.

The combined company, to be based in Fort Worth, will have more than 63,000 core Midland Basin net acres located predominantly in Midland, Martin, Howard and Glasscock counties, the companies said in a statement Monday. Campbell and Sellers will be co-CEOs of the new company, and Sullivan will serve as chairman.

“We believe combining the highly complementary Midland Basin acreage positions of Double Eagle and Veritas Energy creates a truly world-class asset in the core of the most economic basin in North America,” Campbell and Sellers said in the statement.

The announcement continues a wave of deals in the Permian Basin, which has emerged as the most active oil play in the U.S. this year. According to Wood Mackenzie, the Permian has accounted for about half of all energy acquisition spending in the continental U.S., amounting to more than $14 billion.

In August, the energy unit of Blackstone, the giant private-equity firm, announced it is partnering with Fort Worth’s Jetta Operating Co. and committing $1 billion to acquire assets in the Permian Basin. Jetta Permian plans to acquire leaseholds in the Permian’s Delaware Basin in West Texas and southern New Mexico.

Blackstone has also designated $500 million in a partnership with Dallas-based Guidon Energy to acquire assets in the Permian’s Midland Basin.

Last month, Houston-based Apache Corp. revealed that it had been quietly buying 350,000 acres of drilling rights in the Permian.


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Written by Steve Kaskovich

Click HERE to Read the Article by the Publisher.

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