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Private Midland Basin E&Ps Unite To Form 63,000 Acre Stronghold

News Article Sponsored by Lone Star Safety

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Written by: Darren Barbee Senior Editor, Digital News Group Hart Energy

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private-midland-basin-eps-unite-to-form-63000-acre-strongholdTwo private equity-backed companies operating in the Midland Basin have merged to create a leviathan position in some of the most sought-after areas of the Permian Basin.

Double Eagle Lone Star LLC and Veritas Energy Partners Holdings LLC, both based in Fort Worth, Texas, said Oct. 3 they entered a definitive merger agreement. Combined, the companies will control more than 63,000 core Midland net acres located predominantly in Midland, Martin, Howard and Glasscock counties in Texas.

The value of the merger was not disclosed. The two companies share a complementary footprint in the Midland and the deal nets up their working interest on a large portion of the acreage. Together, they will take the name Double Eagle Energy Permian LLC. With assets that are more than 70% operated, the combination will form one of the largest pure play E&Ps focused on the Permian’s Midland Basin.

Double Eagle and Veritas have previously worked together, and Double Eagle helped Veritas build its position.

Double Eagle Energy Permian will accelerate drilling of horizontal wells.

combined-midland-basin-production-since-january

The company will be based in Fort Worth. Double Eagle’s co-CEOs, Cody Campbell and John Sellers, will serve as the co-CEOs of the new company. Hollis Sullivan, president of Veritas Energy, will serve as chairman.

Sellers and Campbell said the combination creates a truly world-class asset in the core of the “most economic basin in North America.”

Campbell and Sellers were among those honored in 2015 by Hart Energy in its Thirty Under 40 series.

With the strength of the new company’s combined management team and its operated, drill-ready acreage position, Double Eagle Energy Permian is “positioned for rapid growth and expansion in the region,” Sullivan said.

Vinson & Elkins LLP acted as legal adviser and Jefferies LLC acted as financial adviser to Double Eagle. Latham & Watkins LLP acted as legal adviser and Tudor, Pickering, Holt & Co. acted as financial adviser to Veritas Energy.


Written by: Darren Barbee Senior Editor, Digital News Group Hart Energy

Click HERE to Read Article From Publisher

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