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Select Realized Investments

Description Realized

Common Resources

Investment Realized: 2010, 2012

Common Resources is a Houston-based independent oil and gas company focused on creating value through the drillbit in multiple onshore U.S. basins. Common originally was formed by the former executive management team of Spinnaker Exploration Company (NYSE: SKE), which sold to Norsk Hydro in December 2005 for $2.6 billion. The management team has now been a part of multiple successful EnCap-backed entities.

  • Common I: Formed in September 2007, Common I built and developed acreage positions in both the Haynesville and Eagle Ford shale plays. After drilling a number of wells to prove the economics of the company’s acreage positions, Common I sold its assets to Talisman Energy (Eagle Ford) and BG/EXCO (Haynesville) in 2010 for total proceeds of $805 million.
  • Common II: Subsequent to the sale of Common I, management again partnered with EnCap to form Common II in May 2010. Common II pursued acreage in the Permian Basin that featured multiple liquids-rich targets. Relatively early on in the life of Common II, the company received an offer for its entire position from an undisclosed buyer. The company closed the sale of its assets in two separate transactions in July and August 2012.

Common Resources

Common Resources

Investment Realized: 2010, 2012

Common Resources is a Houston-based independent oil and gas company focused on creating value through the drillbit in multiple onshore U.S. basins. Common originally was formed by the former executive management team of Spinnaker Exploration Company (NYSE: SKE), which sold to Norsk Hydro in December 2005 for $2.6 billion. The management team has now been a part of multiple successful EnCap-backed entities.

  • Common I: Formed in September 2007, Common I built and developed acreage positions in both the Haynesville and Eagle Ford shale plays. After drilling a number of wells to prove the economics of the company’s acreage positions, Common I sold its assets to Talisman Energy (Eagle Ford) and BG/EXCO (Haynesville) in 2010 for total proceeds of $805 million.
  • Common II: Subsequent to the sale of Common I, management again partnered with EnCap to form Common II in May 2010. Common II pursued acreage in the Permian Basin that featured multiple liquids-rich targets. Relatively early on in the life of Common II, the company received an offer for its entire position from an undisclosed buyer. The company closed the sale of its assets in two separate transactions in July and August 2012.

A Houston-based independent oil and gas company focused on creating value through the drillbit in multiple onshore U.S. basins. Common originally was formed by the former executive management team of Spinnaker Exploration Company.

2010, 2012

Cordillera Energy Partners

Investment Realized: 2003, 2008, 2012

Cordillera Energy Partners is a Denver-based exploration and production company focused on pursuing an acquire-and-exploit strategy. Cordillera actively pursues growth through producing property acquisitions with a focus toward long-life gas reserves principally in the Rocky Mountain and Mid-Continent regions. The founder and CEO of Cordillera was an experienced industry executive who had been instrumental in the consummation of over $1 billion in acquisition and divestiture transactions while at HS Resources and Apache Corporation (NYSE: APA).

  • Cordillera I: In February 2000, EnCap and management formed Cordillera Energy Partners I to acquire and develop properties in the Rocky Mountain and Mid-Continent regions. Utilizing a combination of bank debt and equity, Cordillera pursued an aggressive growth strategy, closing six acquisition transactions between February 2001 and December 2002. In the process, the company amassed over 200 Bcfe of proved reserves at an attractive price of less than $0.90/ss. In 2002, the company initiated an active development program, which substantially increased production volumes and cash flow. In October 2003, Cordillera was sold to Patina Oil & Gas Corporation for cash and warrants.
  • Cordillera II: In December 2004, EnCap and management formed Cordillera Energy Partners II. Over the ensuing three and a half years, Cordillera II deployed its commitment in the Texas Panhandle and East Texas while following a similar strategy as Cordillera I. Due to favorable market conditions, Cordillera II sold its assets to Forest Oil Company (NYSE: FST) in September 2008.
  • Cordillera III: In May 2007, EnCap and management formed Cordillera Energy Partners III to pursue a hybrid acquire-and-exploit/lease-and-drill strategy in the Texas Panhandle Granite Wash play. The company ultimately supplemented a promising initial position in the Granite Wash by expanding its focus to include numerous additional oil and liquids-rich horizons in western Oklahoma. By mid-2012, the company had established a commanding presence in the Western Anadarko Basin with 312,000 net acres and over 24,000 boe/d of liquids-rich production.  Cordillera III merged with Apache Corporation (NYSE: APA) on May 1, 2012 for total consideration of $3.1 billion.

Cordillera Energy Partners

Cordillera Energy Partners

Investment Realized: 2003, 2008, 2012

Cordillera Energy Partners is a Denver-based exploration and production company focused on pursuing an acquire-and-exploit strategy. Cordillera actively pursues growth through producing property acquisitions with a focus toward long-life gas reserves principally in the Rocky Mountain and Mid-Continent regions. The founder and CEO of Cordillera was an experienced industry executive who had been instrumental in the consummation of over $1 billion in acquisition and divestiture transactions while at HS Resources and Apache Corporation (NYSE: APA).

  • Cordillera I: In February 2000, EnCap and management formed Cordillera Energy Partners I to acquire and develop properties in the Rocky Mountain and Mid-Continent regions. Utilizing a combination of bank debt and equity, Cordillera pursued an aggressive growth strategy, closing six acquisition transactions between February 2001 and December 2002. In the process, the company amassed over 200 Bcfe of proved reserves at an attractive price of less than $0.90/ss. In 2002, the company initiated an active development program, which substantially increased production volumes and cash flow. In October 2003, Cordillera was sold to Patina Oil & Gas Corporation for cash and warrants.
  • Cordillera II: In December 2004, EnCap and management formed Cordillera Energy Partners II. Over the ensuing three and a half years, Cordillera II deployed its commitment in the Texas Panhandle and East Texas while following a similar strategy as Cordillera I. Due to favorable market conditions, Cordillera II sold its assets to Forest Oil Company (NYSE: FST) in September 2008.
  • Cordillera III: In May 2007, EnCap and management formed Cordillera Energy Partners III to pursue a hybrid acquire-and-exploit/lease-and-drill strategy in the Texas Panhandle Granite Wash play. The company ultimately supplemented a promising initial position in the Granite Wash by expanding its focus to include numerous additional oil and liquids-rich horizons in western Oklahoma. By mid-2012, the company had established a commanding presence in the Western Anadarko Basin with 312,000 net acres and over 24,000 boe/d of liquids-rich production.  Cordillera III merged with Apache Corporation (NYSE: APA) on May 1, 2012 for total consideration of $3.1 billion.

A Denver-based exploration and production company focused on pursuing an acquire-and-exploit strategy. Cordillera actively pursues growth through producing property acquisitions with a focus toward long-life gas reserves principally in the Rocky Mountain and Mid-Continent regions.

2003, 2008, 2012

Eagle Oil & Gas

Investment Realized: 2012

Eagle Oil & Gas is managed by senior executives with an average of 30 years of exploration and production experience. Eagle is targeting drilling opportunities in West Texas, East Texas and Louisiana.

www.eagleog.com

Eagle Oil & Gas

Eagle Oil & Gas

Investment Realized: 2012

Eagle Oil & Gas is managed by senior executives with an average of 30 years of exploration and production experience. Eagle is targeting drilling opportunities in West Texas, East Texas and Louisiana.

www.eagleog.com

A Dallas-based oil and gas company targeting drilling opportunities in West Texas, East Texas and Louisiana.

2012

Empresa Energy

Investment Realized: 2009, 2010

Empresa Energy is a Houston-based independent oil and gas company focused on the acquisition and development of resource-play-type assets. While partnered with EnCap, the Empresa team has successful realizations in both the Haynesville and Eagle Ford shale plays.

  • Empresa I: EnCap and the Empresa management team formed Empresa in December 2004. The company pursued an aggressive growth strategy, amassing a substantial acreage position in the ArkLaTex Basin and Haynesville Shale play. Empresa successfully executed a development program over a four-and-a-half-year period, creating significant proved reserve value and resource potential. In July 2009, Empresa sold to Chesapeake Energy Corporation (NYSE: CHK).
  • Empresa II: Subsequent to the sale of Empresa I to Chesapeake, EnCap again partnered with management to form Empresa II in July 2009. Over the ensuing year, Empresa II deployed its commitment in the condensate window of the emerging Eagle Ford Shale play. In June 2010, Empresa II’s Eagle Ford assets were acquired by Chesapeake Energy Corporation.

EnCap currently is partnered with Empresa management in Empresa III, which was formed in September 2010.

Empresa Energy

Empresa Energy

Investment Realized: 2009, 2010

Empresa Energy is a Houston-based independent oil and gas company focused on the acquisition and development of resource-play-type assets. While partnered with EnCap, the Empresa team has successful realizations in both the Haynesville and Eagle Ford shale plays.

  • Empresa I: EnCap and the Empresa management team formed Empresa in December 2004. The company pursued an aggressive growth strategy, amassing a substantial acreage position in the ArkLaTex Basin and Haynesville Shale play. Empresa successfully executed a development program over a four-and-a-half-year period, creating significant proved reserve value and resource potential. In July 2009, Empresa sold to Chesapeake Energy Corporation (NYSE: CHK).
  • Empresa II: Subsequent to the sale of Empresa I to Chesapeake, EnCap again partnered with management to form Empresa II in July 2009. Over the ensuing year, Empresa II deployed its commitment in the condensate window of the emerging Eagle Ford Shale play. In June 2010, Empresa II’s Eagle Ford assets were acquired by Chesapeake Energy Corporation.

EnCap currently is partnered with Empresa management in Empresa III, which was formed in September 2010.

A Houston-based independent oil and gas company focused on the acquisition and development of resource-play-type assets. While partnered with EnCap, the Empresa team has had successful realizations in both the Haynesville and Eagle Ford shale plays.

2009, 2010

Enduring Resources

Investment Realized: 2008, 2010, 2014

Enduring Resources is a Denver-based independent oil and gas company focused on acquiring and developing oil and natural gas reserves in domestic onshore basins. Enduring is led by the former management team of Westport Resources, a publicly traded Rocky Mountain-based exploration and production company that was sold to Kerr-McGee (NYSE: KMG) in 2003.

  • Enduring I: Over a six-year period, Enduring assembled and developed multiple assets located primarily in the Uinta Basin, East Texas and the Eagle Ford Shale in South Texas. Enduring monetized the majority of these assets through two major sales: the August 2008 sale of East Texas assets to Cabot Oil & Gas (NYSE: COG) for approximately $600 million and the December 2010 sale of Eagle Ford Shale South Texas assets to Statoil ASA (NYSE: STO) and Talisman Energy (NYSE: TLM) for approximately $1.4 billion.
  • Enduring II: Recapitalized in June 2011, Enduring built and developed a sizeable acreage position in the core of the Wolfcamp play in the Southern Midland Basin. In May 2014, the company announced the sale of these assets to an affiliate of American Energy Partners for $2.5 billion in an all-cash transaction.

Enduring Resources

Enduring Resources

Investment Realized: 2008, 2010, 2014

Enduring Resources is a Denver-based independent oil and gas company focused on acquiring and developing oil and natural gas reserves in domestic onshore basins. Enduring is led by the former management team of Westport Resources, a publicly traded Rocky Mountain-based exploration and production company that was sold to Kerr-McGee (NYSE: KMG) in 2003.

  • Enduring I: Over a six-year period, Enduring assembled and developed multiple assets located primarily in the Uinta Basin, East Texas and the Eagle Ford Shale in South Texas. Enduring monetized the majority of these assets through two major sales: the August 2008 sale of East Texas assets to Cabot Oil & Gas (NYSE: COG) for approximately $600 million and the December 2010 sale of Eagle Ford Shale South Texas assets to Statoil ASA (NYSE: STO) and Talisman Energy (NYSE: TLM) for approximately $1.4 billion.
  • Enduring II: Recapitalized in June 2011, Enduring built and developed a sizeable acreage position in the core of the Wolfcamp play in the Southern Midland Basin. In May 2014, the company announced the sale of these assets to an affiliate of American Energy Partners for $2.5 billion in an all-cash transaction.

Enduring Resources is a Denver-based independent oil and gas company focused on acquiring and developing oil and natural gas reserves in domestic onshore basins.

2008, 2010, 2014

Escondido Resources

Investment Realized: 2007

Escondido Resources is an exploration and production company focused on the Olmos Trend in South Texas. The Escondido management team has an excellent track record of acquiring both producing and non-producing properties and maximizing value through additional development.

Since formation in December 2004, Escondido successfully acquired over 80,000 net acres located in the Maverick Basin in South Texas. Within this acreage position, Escondido drilled over 150 natural gas wells targeting the shallow Escondido and Olmos sands with a success rate of greater than 95%.

In September 2007, Escondido entered into a definitive agreement to sell its oil and gas assets to Swift Energy Company (NYSE: SFY) for $245 million.

EnCap currently is partnered with Escondido management in Escondido Resources II, formed in December 2007.

Escondido Resources

Escondido Resources

Investment Realized: 2007

Escondido Resources is an exploration and production company focused on the Olmos Trend in South Texas. The Escondido management team has an excellent track record of acquiring both producing and non-producing properties and maximizing value through additional development.

Since formation in December 2004, Escondido successfully acquired over 80,000 net acres located in the Maverick Basin in South Texas. Within this acreage position, Escondido drilled over 150 natural gas wells targeting the shallow Escondido and Olmos sands with a success rate of greater than 95%.

In September 2007, Escondido entered into a definitive agreement to sell its oil and gas assets to Swift Energy Company (NYSE: SFY) for $245 million.

EnCap currently is partnered with Escondido management in Escondido Resources II, formed in December 2007.

An exploration and production company focused on the Olmos Trend in South Texas. The Escondido management team has an excellent track record of acquiring both producing and non-producing properties and maximizing value through additional development.

2007

Felix Energy

Investment Realized: 2016

Felix Energy is a Denver-based exploration and production company focused on the pursuit of identified, liquids-rich unconventional assets within the most economic emerging domestic basins. Felix was formed in April 2013 by a multidisciplinary management team with an extensive track record of value creation and experience working with some of the largest and best operators in the industry.

Over a three-year period, Felix assembled 80,000 net acres in the core of the STACK play located in Blaine, Canadian and Kingfisher counties. By pursuing an aggressive horizontal development program in the Meramec and Woodford formations, the company was able to successfully grow production, reserves and cash flow while demonstrating the resource potential of its acreage. In January 2016, Felix was sold to Devon Energy (NYSE: DVN) for total consideration of $1.9 billion.

EnCap currently is partnered with the Felix management team in Felix Energy II, which was formed in September 2015.

Felix Energy

Felix Energy

Investment Realized: 2016

Felix Energy is a Denver-based exploration and production company focused on the pursuit of identified, liquids-rich unconventional assets within the most economic emerging domestic basins. Felix was formed in April 2013 by a multidisciplinary management team with an extensive track record of value creation and experience working with some of the largest and best operators in the industry.

Over a three-year period, Felix assembled 80,000 net acres in the core of the STACK play located in Blaine, Canadian and Kingfisher counties. By pursuing an aggressive horizontal development program in the Meramec and Woodford formations, the company was able to successfully grow production, reserves and cash flow while demonstrating the resource potential of its acreage. In January 2016, Felix was sold to Devon Energy (NYSE: DVN) for total consideration of $1.9 billion.

EnCap currently is partnered with the Felix management team in Felix Energy II, which was formed in September 2015.

A Denver-based exploration and production company formed in April 2013 by a multidisciplinary management team with an extensive track record of value creation and experience working with some of the largest and best operators in the industry.

2016

Grenadier Energy / Stroud Energy

Investment Realized: 2006, 2012

Headquartered in The Woodlands, Texas, Grenadier Energy Partners is an upstream oil and gas company led by Patrick J. Noyes and other former members of the Stroud Energy management team who have an extensive track record of value creation. Grenadier actively pursues attractive asset acquisitions and low-risk exploratory drilling opportunities in unconventional reservoirs throughout the U.S.   

  • Stroud Energy: Originally established in 1985, Stroud Energy was a Fort Worth-based, independent oil and gas company. At the time of EnCap’s investment in 2003, Stroud had recently undergone an extensive transformation, having replaced its senior management team, restructured its balance sheet and redefined its strategy. EnCap’s equity infusion substantially delevered the company providing Stroud’s new management team with growth capital to pursue their acquisition strategy. The company expanded its existing position in the Barnett Shale and East Texas through a number of acquisitions and farmout agreements. As a result of successful drilling in these two areas, as well as the Austin Chalk, Stroud substantially increased production and doubled its base of proved reserves. Due to a receptive public market and a compelling valuation, Stroud engaged Raymond James in early 2005 to take the company public through a 144A offering. In September 2005, Stroud successfully completed the 144A offering and in June 2006, Stroud sold to Range Resources (NYSE: RRC) for $450 million.
  • Grenadier Energy Partners: In April 2007, core members of Stroud’s management team and EnCap partnered to form Grenadier Energy Partners. Grenadier was led by Patrick J. Noyes and focused on a strategy that included a blend of asset acquisitions and exploitation combined with low-risk exploratory drilling in unconventional resource plays. The company initially explored opportunities in the Fort Worth Basin before turning its attention to the Marcellus Shale Play in West Virginia. From 2009 to 2012, Grenadier built a blocked up, attractive position of approximately 15,000 net acres in Wetzel County, West Virginia, and drilled eight wells before electing to sell as part of a three-company package to Statoil USA Onshore Properties, Inc. for total consideration of $590 million.  

EnCap currently is partnered with the Grenadier management team in Grenadier Energy Partners II, formed in July 2012.

www.grenadierenergy.com

Grenadier Energy / Stroud Energy

Grenadier Energy / Stroud Energy

Investment Realized: 2006, 2012

Headquartered in The Woodlands, Texas, Grenadier Energy Partners is an upstream oil and gas company led by Patrick J. Noyes and other former members of the Stroud Energy management team who have an extensive track record of value creation. Grenadier actively pursues attractive asset acquisitions and low-risk exploratory drilling opportunities in unconventional reservoirs throughout the U.S.   

  • Stroud Energy: Originally established in 1985, Stroud Energy was a Fort Worth-based, independent oil and gas company. At the time of EnCap’s investment in 2003, Stroud had recently undergone an extensive transformation, having replaced its senior management team, restructured its balance sheet and redefined its strategy. EnCap’s equity infusion substantially delevered the company providing Stroud’s new management team with growth capital to pursue their acquisition strategy. The company expanded its existing position in the Barnett Shale and East Texas through a number of acquisitions and farmout agreements. As a result of successful drilling in these two areas, as well as the Austin Chalk, Stroud substantially increased production and doubled its base of proved reserves. Due to a receptive public market and a compelling valuation, Stroud engaged Raymond James in early 2005 to take the company public through a 144A offering. In September 2005, Stroud successfully completed the 144A offering and in June 2006, Stroud sold to Range Resources (NYSE: RRC) for $450 million.
  • Grenadier Energy Partners: In April 2007, core members of Stroud’s management team and EnCap partnered to form Grenadier Energy Partners. Grenadier was led by Patrick J. Noyes and focused on a strategy that included a blend of asset acquisitions and exploitation combined with low-risk exploratory drilling in unconventional resource plays. The company initially explored opportunities in the Fort Worth Basin before turning its attention to the Marcellus Shale Play in West Virginia. From 2009 to 2012, Grenadier built a blocked up, attractive position of approximately 15,000 net acres in Wetzel County, West Virginia, and drilled eight wells before electing to sell as part of a three-company package to Statoil USA Onshore Properties, Inc. for total consideration of $590 million.  

EnCap currently is partnered with the Grenadier management team in Grenadier Energy Partners II, formed in July 2012.

www.grenadierenergy.com

Headquartered in The Woodlands, Texas, an upstream oil and gas company led by Patrick J. Noyes and other former members of the Stroud Energy management team who have an extensive track record of value creation. Grenadier actively pursues attractive asset acquisitions and low-risk exploratory drilling opportunities in unconventional reservoirs throughout the U.S.   

2006, 2012

Laramie Energy

Investment Realized: 2007

Laramie Energy is a Denver-based, independent oil and gas company formed by former executives of Forest Oil Corporation (NYSE: FST) and Mesa-Hydrocarbons, Inc. Laramie is focused on acquiring and exploiting unconventional natural gas plays in the Rocky Mountains, primarily in the Piceance Basin of Colorado.

From its inception in May 2004 to its exit in May 2007, Laramie acquired a total of 66,000 gross / 58,000 net acres in the Piceance Basin through small acquisitions and Federal Lease Sales. These acquisitions were primarily acreage acquisitions without PDP reserves.

Laramie was able to create significant value on this acreage through a successful drilling effort that resulted in over 380 Bcfe of Total Proved reserves at the time of its sale. Over the three-year period, the Company successfully drilled over 200 wells in the Piceance Basin. The Company’s developmental success also added significant Probable upside resulting in 2.2 Tcfe of total net (2P) reserves at exit.

In May 2007, Laramie sold to Plains Exploration & Production Company (NYSE: PXP) for approximately $1.0 billion.

EnCap currently is partnered with the same management team through Laramie Energy II.

Laramie Energy

Laramie Energy

Investment Realized: 2007

Laramie Energy is a Denver-based, independent oil and gas company formed by former executives of Forest Oil Corporation (NYSE: FST) and Mesa-Hydrocarbons, Inc. Laramie is focused on acquiring and exploiting unconventional natural gas plays in the Rocky Mountains, primarily in the Piceance Basin of Colorado.

From its inception in May 2004 to its exit in May 2007, Laramie acquired a total of 66,000 gross / 58,000 net acres in the Piceance Basin through small acquisitions and Federal Lease Sales. These acquisitions were primarily acreage acquisitions without PDP reserves.

Laramie was able to create significant value on this acreage through a successful drilling effort that resulted in over 380 Bcfe of Total Proved reserves at the time of its sale. Over the three-year period, the Company successfully drilled over 200 wells in the Piceance Basin. The Company’s developmental success also added significant Probable upside resulting in 2.2 Tcfe of total net (2P) reserves at exit.

In May 2007, Laramie sold to Plains Exploration & Production Company (NYSE: PXP) for approximately $1.0 billion.

EnCap currently is partnered with the same management team through Laramie Energy II.

A Denver-based, independent oil and gas company formed by former executives of Forest Oil Corporation (NYSE: FST) and Mesa-Hydrocarbons, Inc. Laramie is focused on acquiring and exploiting unconventional natural gas plays in the Rocky Mountains, primarily in the Piceance Basin of Colorado.

2007

Laredo Energy

Investment Realized: 2003, 2005, 2007

Laredo Energy is a Houston-based independent oil and gas acquisition and development company with operations in the Lobo Trend in South Texas. While partnered with EnCap, the Laredo team has successfully developed and realized assets in this area several times.

  • Laredo I: In December 2001, EnCap and management formed Laredo to finance the acquisition and development of properties in the Lobo Trend. Laredo acquired and developed acreage and in the Lobo Trend and, after executing a successful development program, was acquired by Chesapeake Energy (NYSE: CHK) in October 2003 for $200 million.
  • Laredo II: Subsequent to the sale of Laredo I in October 2003, EnCap and Laredo management formed Laredo II. In December 2003, Laredo II acquired producing properties with development upside from ChevronTexaco. Like its predecessor, Laredo II demonstrated significant development upside and later sold to Chesapeake Energy Corporation in March 2005 for $369 million.
  • Laredo III: Laredo III experienced similar success in the Lobo Trend, ultimately increasing production to over 16 MMcfe per day before exiting to El Paso Corporation (NYSE: EP) in January 2007 for $255 million.

Laredo Energy

Laredo Energy

Investment Realized: 2003, 2005, 2007

Laredo Energy is a Houston-based independent oil and gas acquisition and development company with operations in the Lobo Trend in South Texas. While partnered with EnCap, the Laredo team has successfully developed and realized assets in this area several times.

  • Laredo I: In December 2001, EnCap and management formed Laredo to finance the acquisition and development of properties in the Lobo Trend. Laredo acquired and developed acreage and in the Lobo Trend and, after executing a successful development program, was acquired by Chesapeake Energy (NYSE: CHK) in October 2003 for $200 million.
  • Laredo II: Subsequent to the sale of Laredo I in October 2003, EnCap and Laredo management formed Laredo II. In December 2003, Laredo II acquired producing properties with development upside from ChevronTexaco. Like its predecessor, Laredo II demonstrated significant development upside and later sold to Chesapeake Energy Corporation in March 2005 for $369 million.
  • Laredo III: Laredo III experienced similar success in the Lobo Trend, ultimately increasing production to over 16 MMcfe per day before exiting to El Paso Corporation (NYSE: EP) in January 2007 for $255 million.

A Houston-based independent oil and gas acquisition and development company with operations in the Lobo Trend in South Texas. While partnered with EnCap, the Laredo team has successfully developed and realized assets in this area several times.

2003, 2005, 2007

Limestone Exploration

Investment Realized: 2010

Limestone Exploration is a Midland, Texas-based independent oil and gas company focused on acquiring and developing acreage in the Spraberry and Wolfcamp (Wolfberry) trend.  Limestone was formed by a multidisciplinary management team with extensive experience in the Permian Basin and strong connections in the Midland area.

At the time of EnCap’s initial commitment to Limestone in April 2008, the company had identified and obtained an option on 7,500 contiguous net acres in Martin County, Texas, that were highly prospective for the Spraberry and Wolfcamp formations. The management team believed that the Wolfberry model of combining several discrete stratigraphic reservoirs in the Permian Basin and stimulating them with modern technology would result in economically viable wells. Limestone drilled a total of 19 successful wells, generating 28.2 MMBoe of proved reserves and ~1,000 boe/d of net production by September 2010. In October 2010, Limestone closed the sale of its assets to an undisclosed buyer.

EnCap is currently partnered with the Limestone management team in Carrera Energy, which was formed in October 2010.

Limestone Exploration

Limestone Exploration

Investment Realized: 2010

Limestone Exploration is a Midland, Texas-based independent oil and gas company focused on acquiring and developing acreage in the Spraberry and Wolfcamp (Wolfberry) trend.  Limestone was formed by a multidisciplinary management team with extensive experience in the Permian Basin and strong connections in the Midland area.

At the time of EnCap’s initial commitment to Limestone in April 2008, the company had identified and obtained an option on 7,500 contiguous net acres in Martin County, Texas, that were highly prospective for the Spraberry and Wolfcamp formations. The management team believed that the Wolfberry model of combining several discrete stratigraphic reservoirs in the Permian Basin and stimulating them with modern technology would result in economically viable wells. Limestone drilled a total of 19 successful wells, generating 28.2 MMBoe of proved reserves and ~1,000 boe/d of net production by September 2010. In October 2010, Limestone closed the sale of its assets to an undisclosed buyer.

EnCap is currently partnered with the Limestone management team in Carrera Energy, which was formed in October 2010.

A Midland, Texas-based independent oil and gas company focused on acquiring and developing acreage in the Spraberry and Wolfcamp (Wolfberry) trend. Limestone was formed by a multidisciplinary management team with extensive experience in the Permian Basin and strong connections in the Midland area.

2010

Lone Star Land & Energy

Investment Realized: 2010

Lone Star Land & Energy was a Dallas-based independent oil and gas company focused on the pursuit of acquisitions of producing properties with behind-pipe and drill-bit-oriented upside and acreage-and-drilling opportunities in low-risk resource play areas. Lone Star was formed by a team of seasoned E&P executives with over 100 years of aggregate experience in A&D, land, technical evaluation, geology and drilling/production in the Delaware Basin, Permian Basin, Williston Basin, Gulf Coast, East Texas and North Louisiana. 

After closing on an initial acquisition of producing properties in South and West Texas, Lone Star conducted an in-depth study of the Williston Basin and decided to pursue a sizeable acreage position in a targeted area of the Bakken Shale oil resource play in North Dakota. Over the course of the following 18 months, the team successfully pieced together an attractive 26,000-net-acre footprint in Dunn and Mountrail counties.

From late 2009 through early 2010, Lone Star partnered with an industry player and drilled eight gross (four net) wells with positive results. The board decided to capitalize on Lone Star’s positive drilling results and the industry’s increased appetite for oily assets by putting the assets up for sale. While the company took initial steps in initiating a marketed process, it ultimately accepted a pre-emptive offer from its partner in mid-2010 and sold its Texas producing properties in late 2010.

EnCap currently is partnered with core members of Lone Star’s management team through Lone Star II.

Lone Star Land & Energy

Lone Star Land & Energy

Investment Realized: 2010

Lone Star Land & Energy was a Dallas-based independent oil and gas company focused on the pursuit of acquisitions of producing properties with behind-pipe and drill-bit-oriented upside and acreage-and-drilling opportunities in low-risk resource play areas. Lone Star was formed by a team of seasoned E&P executives with over 100 years of aggregate experience in A&D, land, technical evaluation, geology and drilling/production in the Delaware Basin, Permian Basin, Williston Basin, Gulf Coast, East Texas and North Louisiana. 

After closing on an initial acquisition of producing properties in South and West Texas, Lone Star conducted an in-depth study of the Williston Basin and decided to pursue a sizeable acreage position in a targeted area of the Bakken Shale oil resource play in North Dakota. Over the course of the following 18 months, the team successfully pieced together an attractive 26,000-net-acre footprint in Dunn and Mountrail counties.

From late 2009 through early 2010, Lone Star partnered with an industry player and drilled eight gross (four net) wells with positive results. The board decided to capitalize on Lone Star’s positive drilling results and the industry’s increased appetite for oily assets by putting the assets up for sale. While the company took initial steps in initiating a marketed process, it ultimately accepted a pre-emptive offer from its partner in mid-2010 and sold its Texas producing properties in late 2010.

EnCap currently is partnered with core members of Lone Star’s management team through Lone Star II.

A Dallas-based independent oil and gas company focused on the pursuit of acquisitions of producing properties with behind-pipe and drill-bit-oriented upside and acreage-and-drilling opportunities in low-risk resource play areas.

2010

Marquette Exploration

Investment Realized: 2011

Marquette Exploration was an upstream oil and gas company focused on unconventional resource plays in several basins throughout North America. Marquette was formed by a seasoned management and technical team that formerly served with Burlington Resources and ConocoPhillips (NYSE: COP) and exhibited a proven track record of discovering and developing significant unconventional resources throughout North America.

Subsequent to formation in September 2006, Marquette identified three underexploited resource plays located in East Ohio, North Louisiana and Michigan and built significant leasehold positions in each play. Over the next several years, Marquette successfully tested and delineated each play in order to establish the resource potential. Marquette ultimately sold its Michigan assets (125,000 acres) in Q2 2010 to an undisclosed buyer for $74 million and, in Q3 2011, Hess Corporation (NYSE: HES) purchased Marquette and other leases in Ohio’s Utica Shale play for $750 million.

Marquette Exploration

Marquette Exploration

Investment Realized: 2011

Marquette Exploration was an upstream oil and gas company focused on unconventional resource plays in several basins throughout North America. Marquette was formed by a seasoned management and technical team that formerly served with Burlington Resources and ConocoPhillips (NYSE: COP) and exhibited a proven track record of discovering and developing significant unconventional resources throughout North America.

Subsequent to formation in September 2006, Marquette identified three underexploited resource plays located in East Ohio, North Louisiana and Michigan and built significant leasehold positions in each play. Over the next several years, Marquette successfully tested and delineated each play in order to establish the resource potential. Marquette ultimately sold its Michigan assets (125,000 acres) in Q2 2010 to an undisclosed buyer for $74 million and, in Q3 2011, Hess Corporation (NYSE: HES) purchased Marquette and other leases in Ohio’s Utica Shale play for $750 million.

An upstream oil and gas company focused on unconventional resource plays in several basins throughout North America. Marquette was formed by a seasoned management and technical team that formerly served with Burlington Resources and ConocoPhillips (NYSE: COP) and exhibited a proven track record of discovering and developing significant unconventional resources throughout North America.

2011

Oasis Petroleum

Investment Realized: 2010

Oasis Petroleum (NYSE: OAS) is a Houston-based independent oil and gas company focused on the acquisition and development of unconventional oil and natural gas resources. Oasis was formed by former senior management members at Burlington Resources, which was acquired by ConocoPhillips (NYSE: COP) in March 2006.

Since its formation in March 2007 through June 2010, Oasis aggregated more than 292,000 net acres in the Williston Basin through a series of acquisition and farm-in transactions. By pursuing an aggressive horizontal development program in the Bakken and Three Forks formations, the company was able to successfully grow production and reserves while demonstrating the resource potential of its acreage. In June 2010, Oasis successfully priced its IPO at $14 per share and is now listed on the NYSE under the symbol OAS.

Oasis Petroleum

Oasis Petroleum

Investment Realized: 2010

Oasis Petroleum (NYSE: OAS) is a Houston-based independent oil and gas company focused on the acquisition and development of unconventional oil and natural gas resources. Oasis was formed by former senior management members at Burlington Resources, which was acquired by ConocoPhillips (NYSE: COP) in March 2006.

Since its formation in March 2007 through June 2010, Oasis aggregated more than 292,000 net acres in the Williston Basin through a series of acquisition and farm-in transactions. By pursuing an aggressive horizontal development program in the Bakken and Three Forks formations, the company was able to successfully grow production and reserves while demonstrating the resource potential of its acreage. In June 2010, Oasis successfully priced its IPO at $14 per share and is now listed on the NYSE under the symbol OAS.

A Houston-based independent oil and gas company focused on the acquisition and development of unconventional oil and natural gas resources. Oasis was formed by former senior management members at Burlington Resources, which was acquired by ConocoPhillips (NYSE: COP) in March 2006.

2010

OGX Resources

Investment Realized: 2008, 2011

OGX is a Midland, Texas-based oil and gas company focused on acquiring and exploiting oil and gas properties primarily in the Permian Basin of West Texas and Southeast New Mexico. Key management members have extensive experience as independent owners and operators of oil and gas properties in the region. Management's track record of value creation includes two successful EnCap sponsored entities.

The team initially partnered with EnCap in 2006 and subsequently sold the majority of its assets to Legend Natural Gas III in March 2008.

Subsequently, the team partnered with EnCap in May 2011 to form OGX II, and through the course of the investment, acquired and sold assets through four separate transactions:

  • the sale of ~33,600 gross acres in Eddy and Lea counties in New Mexico and Culberson, Reeves, and Loving counties in Texas to Concho Resources in November 2011 for $250.0 million;
  • the sale of 4,640 acres in Reagan and Upton counties in Texas to Parsley Energy in June 2014 for $127.6 million;
  • the sale of ~30,000 gross acres in Winkler County, Texas, to an undisclosed buyer in July 2014 for $124.8 million; and
  • the sale of ~2,800 acres in Reeves and Loving counties to an undisclosed buyer for $80.6 million.

EnCap currently is partnered with the OGX management team in OGX III, formed in January 2015.

OGX Resources

OGX Resources

Investment Realized: 2008, 2011

OGX is a Midland, Texas-based oil and gas company focused on acquiring and exploiting oil and gas properties primarily in the Permian Basin of West Texas and Southeast New Mexico. Key management members have extensive experience as independent owners and operators of oil and gas properties in the region. Management's track record of value creation includes two successful EnCap sponsored entities.

The team initially partnered with EnCap in 2006 and subsequently sold the majority of its assets to Legend Natural Gas III in March 2008.

Subsequently, the team partnered with EnCap in May 2011 to form OGX II, and through the course of the investment, acquired and sold assets through four separate transactions:

  • the sale of ~33,600 gross acres in Eddy and Lea counties in New Mexico and Culberson, Reeves, and Loving counties in Texas to Concho Resources in November 2011 for $250.0 million;
  • the sale of 4,640 acres in Reagan and Upton counties in Texas to Parsley Energy in June 2014 for $127.6 million;
  • the sale of ~30,000 gross acres in Winkler County, Texas, to an undisclosed buyer in July 2014 for $124.8 million; and
  • the sale of ~2,800 acres in Reeves and Loving counties to an undisclosed buyer for $80.6 million.

EnCap currently is partnered with the OGX management team in OGX III, formed in January 2015.

A Midland, Texas-based oil and gas company focused on acquiring and exploiting oil and gas properties primarily in the Permian Basin of West Texas and Southeast New Mexico.

2008, 2011

Paloma Partners

Investment Realized: 1999, 2008, 2012, 2015

Paloma Resources is a privately held, Houston-based oil and gas company focused on the acquisition and development of acreage in resource plays throughout the United States. Management’s track record of value creation includes four successful EnCap sponsored entities: San Juan Partners, Paloma Barnett, Paloma Partners II and Paloma III.

  • San Juan Partners: Formed in January 1998, San Juan took a controlling interest in Burlington Resources Coal Seam Gas Royalty Trust. EnCap ultimately realized proceeds of $27.7 million on this transaction.
  • Paloma Barnett: Paloma Barnett was formed in February 2007 to pursue the acquisition and development of properties in the Barnett Shale play. Management deployed a highly focused leasing and development strategy, and in February 2008, Paloma Barnett was sold to Chesapeake Energy (NYSE: CHK) for $225 million.
  • Paloma Partners II: Capitalized in November 2009, Paloma Partners II was formed to pursue an acquisition-and-development strategy in the Haynesville Shale. After identifying the condensate window of the Eagle Ford Shale as one of the most economic plays in the U.S., the company exited its Haynesville position and began to focus exclusively on aggregating leasehold and drilling wells in the most economic areas of the Eagle Ford. In August 2012, Paloma II sold its position to Marathon Oil Corporation (NYSE: MRO) for $750 million.
  • Paloma III Realization: Capitalized in August 2012, Paloma Partners III was formed to pursue a leasing-and-development strategy in the Utica. Paloma III amassed a 23,700-net-acre dry-gas Utica position, which was ultimately purchased by Gulfport Energy (NASDAQ:GPOR) in August 2015 for $301 million.

Paloma Partners

Paloma Partners

Investment Realized: 1999, 2008, 2012, 2015

Paloma Resources is a privately held, Houston-based oil and gas company focused on the acquisition and development of acreage in resource plays throughout the United States. Management’s track record of value creation includes four successful EnCap sponsored entities: San Juan Partners, Paloma Barnett, Paloma Partners II and Paloma III.

  • San Juan Partners: Formed in January 1998, San Juan took a controlling interest in Burlington Resources Coal Seam Gas Royalty Trust. EnCap ultimately realized proceeds of $27.7 million on this transaction.
  • Paloma Barnett: Paloma Barnett was formed in February 2007 to pursue the acquisition and development of properties in the Barnett Shale play. Management deployed a highly focused leasing and development strategy, and in February 2008, Paloma Barnett was sold to Chesapeake Energy (NYSE: CHK) for $225 million.
  • Paloma Partners II: Capitalized in November 2009, Paloma Partners II was formed to pursue an acquisition-and-development strategy in the Haynesville Shale. After identifying the condensate window of the Eagle Ford Shale as one of the most economic plays in the U.S., the company exited its Haynesville position and began to focus exclusively on aggregating leasehold and drilling wells in the most economic areas of the Eagle Ford. In August 2012, Paloma II sold its position to Marathon Oil Corporation (NYSE: MRO) for $750 million.
  • Paloma III Realization: Capitalized in August 2012, Paloma Partners III was formed to pursue a leasing-and-development strategy in the Utica. Paloma III amassed a 23,700-net-acre dry-gas Utica position, which was ultimately purchased by Gulfport Energy (NASDAQ:GPOR) in August 2015 for $301 million.

A Houston-based oil and gas company focused on the acquisition and development of acreage in highly economic resource plays in the U.S.  The Paloma team has a history of value creation through multiple entities in multiple geographic areas.

1999, 2008, 2012, 2015

PayRock Energy

Investment Realized: 2016

PayRock Energy is an Oklahoma City-based exploration and production company focused on the pursuit of statistically proven, liquids-rich unconventional assets within the most economic basins. PayRock was formed in November 2012 by a seasoned management team with an extensive track record of value creation and experience working for top tier operators in the oil and gas industry.

PayRock amassed 61,000 net acres as an early mover in the core of the STACK play, primarily in Oklahoma's Kingfisher and Canadian counties.  By continuously refining its drilling and completion practices to drive down well costs and enhance well performance, management was able to unlock substantial value and deliver a sizeable and scalable opportunity with compelling, oil-weighted economics and tangible upside in the core of one of the most attractive resource plays in the United States.

In August 2016, PayRock closed on its sale to Marathon Oil Corporation (NYSE: MRO) for an all-cash consideration of $887.5 million.

PayRock Energy

PayRock Energy

Investment Realized: 2016

PayRock Energy is an Oklahoma City-based exploration and production company focused on the pursuit of statistically proven, liquids-rich unconventional assets within the most economic basins. PayRock was formed in November 2012 by a seasoned management team with an extensive track record of value creation and experience working for top tier operators in the oil and gas industry.

PayRock amassed 61,000 net acres as an early mover in the core of the STACK play, primarily in Oklahoma's Kingfisher and Canadian counties.  By continuously refining its drilling and completion practices to drive down well costs and enhance well performance, management was able to unlock substantial value and deliver a sizeable and scalable opportunity with compelling, oil-weighted economics and tangible upside in the core of one of the most attractive resource plays in the United States.

In August 2016, PayRock closed on its sale to Marathon Oil Corporation (NYSE: MRO) for an all-cash consideration of $887.5 million.

An Oklahoma City-based exploration and production company focused on the pursuit of statistically proven, liquids-rich unconventional assets within the most economic basins. PayRock was formed in November 2012 by a seasoned management team with an extensive track record of value creation and experience working for top tier operators in the oil and gas industry.

2016

PetroHawk Energy Corporation

Investment Realized: 2011

Petrohawk Energy Corporation was a publicly traded E&P company based in Houston. The company was formed in May 2003 by Floyd Wilson, the former founder and CEO of 3TEC Energy, a successful EnCap Fund III investment. The company has aggressively pursued its acquire-and-exploit growth strategy and has evolved from a startup to a substantial mid-cap independent.

In May 2004, Petrohawk acquired a controlling interest in Beta Oil & Gas (“Beta”), a small publicly traded oil and gas company based in Tulsa, with the intention of utilizing Beta as a platform to raise public equity for future growth. Subsequent to the transaction, Beta was renamed Petrohawk.

In January 2005, Petrohawk completed a Reg-D offering to supplement bank financing in consummating the acquisition of Wynn Crosby Energy, Inc. Following this offering, EnCap sold enough of its common stock in Petrohawk to recoup its initial investment.

In July 2005, Petrohawk finalized a merger with Mission Resources Corporation, a publicly traded E&P company with assets in the Permian Basin and Gulf Coast. The combined company had over $1 billion of oil and gas assets. Subsequent to this merger, EnCap began to strategically liquidate its remaining ownership in the company until the last of the securities were sold in February 2006.

In July 2006, Petrohawk completed a merger with KCS Energy, creating a combined company with estimated proved reserves of approximately 1 Tcfe.

In August 2011, Petrohawk was sold to BHP Billiton for a cash offer of $38.75 per share, representing a total equity value of ~$12.1 billion and a total enterprise value of ~$15.1 billion. EnCap has again backed PetroHawk CEO Wilson in a new venture, Halcón Reserves.

PetroHawk Energy Corporation

PetroHawk Energy Corporation

Investment Realized: 2011

Petrohawk Energy Corporation was a publicly traded E&P company based in Houston. The company was formed in May 2003 by Floyd Wilson, the former founder and CEO of 3TEC Energy, a successful EnCap Fund III investment. The company has aggressively pursued its acquire-and-exploit growth strategy and has evolved from a startup to a substantial mid-cap independent.

In May 2004, Petrohawk acquired a controlling interest in Beta Oil & Gas (“Beta”), a small publicly traded oil and gas company based in Tulsa, with the intention of utilizing Beta as a platform to raise public equity for future growth. Subsequent to the transaction, Beta was renamed Petrohawk.

In January 2005, Petrohawk completed a Reg-D offering to supplement bank financing in consummating the acquisition of Wynn Crosby Energy, Inc. Following this offering, EnCap sold enough of its common stock in Petrohawk to recoup its initial investment.

In July 2005, Petrohawk finalized a merger with Mission Resources Corporation, a publicly traded E&P company with assets in the Permian Basin and Gulf Coast. The combined company had over $1 billion of oil and gas assets. Subsequent to this merger, EnCap began to strategically liquidate its remaining ownership in the company until the last of the securities were sold in February 2006.

In July 2006, Petrohawk completed a merger with KCS Energy, creating a combined company with estimated proved reserves of approximately 1 Tcfe.

In August 2011, Petrohawk was sold to BHP Billiton for a cash offer of $38.75 per share, representing a total equity value of ~$12.1 billion and a total enterprise value of ~$15.1 billion. EnCap has again backed PetroHawk CEO Wilson in a new venture, Halcón Reserves.

A publicly traded E&P company based in Houston. The company was formed in May 2003 by Floyd Wilson, the former founder and CEO of 3TEC Energy, a successful EnCap Fund III investment.

2011

Piedra Resources

Investment Realized: 2011, 2014

Piedra is a privately held, Midland, Texas-based oil and gas company focused in the Permian Basin. Consistent with management's expertise and historical track record, Piedra has pursued the exploration and development of lower risk resource plays with scalability and upside. Management's track record of value creation includes two successful EnCap-sponsored entities.

The team initially partnered with EnCap in 2007 and sold the majority of its assets to Berry Petroleum (NYSE:BRY) in 2011.

Subsequently, the team partnered with EnCap in July 2011 to form Piedra II, and through the course of the investment, acquired and sold assets through two transactions:

  • the sale of 70% of its 11,800 net acres in the Wolfbone Play in Pecos and Reeves counties in Texas; and
  • the sale of its Midland Basin assets to Athlon.

EnCap currently is partnered with the Piedra management team in Piedra III, formed in 2014.

Piedra Resources

Piedra Resources

Investment Realized: 2011, 2014

Piedra is a privately held, Midland, Texas-based oil and gas company focused in the Permian Basin. Consistent with management's expertise and historical track record, Piedra has pursued the exploration and development of lower risk resource plays with scalability and upside. Management's track record of value creation includes two successful EnCap-sponsored entities.

The team initially partnered with EnCap in 2007 and sold the majority of its assets to Berry Petroleum (NYSE:BRY) in 2011.

Subsequently, the team partnered with EnCap in July 2011 to form Piedra II, and through the course of the investment, acquired and sold assets through two transactions:

  • the sale of 70% of its 11,800 net acres in the Wolfbone Play in Pecos and Reeves counties in Texas; and
  • the sale of its Midland Basin assets to Athlon.

EnCap currently is partnered with the Piedra management team in Piedra III, formed in 2014.

A privately held, Midland, Texas-based oil and gas company focused in the Permian Basin pursuing the exploration and development of lower risk resource plays with scalability and upside.

2011, 2014

Plains All American Pipeline, L.P.

Investment Realized: 2009

Plains All American is a publicly traded master limited partnership (NYSE: PAA) engaged in crude oil gathering, transportation, marketing and storage in the U.S. and Canada.  EnCap’s storied investment in PAA stems from its extremely strong relationship with the senior PAA management team. Dating back to EnCap’s investment in Plains Resources in June 2001 (“PLX”, formerly the sole GP owner of PAA), EnCap developed an understanding of the exceptional, value-driven PAA management team. 

Over the following eight and a half years, PAA pursued an aggressive development strategy growing from a $75 million equity valuation in 2001 to a $2.8 billion equity valuation in 2009. 

In December 2009, Occidental Petroleum Corporation (NYSE: OXY) purchased EnCap’s general-partner interest in PAA.

Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P.

Investment Realized: 2009

Plains All American is a publicly traded master limited partnership (NYSE: PAA) engaged in crude oil gathering, transportation, marketing and storage in the U.S. and Canada.  EnCap’s storied investment in PAA stems from its extremely strong relationship with the senior PAA management team. Dating back to EnCap’s investment in Plains Resources in June 2001 (“PLX”, formerly the sole GP owner of PAA), EnCap developed an understanding of the exceptional, value-driven PAA management team. 

Over the following eight and a half years, PAA pursued an aggressive development strategy growing from a $75 million equity valuation in 2001 to a $2.8 billion equity valuation in 2009. 

In December 2009, Occidental Petroleum Corporation (NYSE: OXY) purchased EnCap’s general-partner interest in PAA.

A publicly traded master limited partnership (NYSE: PAA) engaged in crude oil gathering, transportation, marketing and storage in the U.S. and Canada.

2009

Plantation Petroleum Company

Investment Realized: 2003, 2005, 2007, 2011

Headquartered in Houston, Plantation Petroleum Company is an upstream oil and gas company focused on opportunities in the Permian Basin.

  • Plantation I: In July 2002, EnCap invested growth capital to facilitate Plantation’s acquisition of a publicly held company focused in the Permian Basin. The Plantation management team implemented a successful development plan and sold to Forest Oil Corporation (NYSE: FST) in December 2003.
  • Plantation II: Subsequent to the sale of Plantation I to Forest Oil, management again partnered with EnCap to form Plantation II in November 2003. Using a combination of bank debt and equity, Plantation II closed a highly attractive acquisition in Southeast New Mexico and created additional value by increasing production at a minimal cost. In June 2005, Plantation II sold to Range Resources Corporation (NYSE: RRC) for $116.5 million.
  • Plantation III: In December 2005, management partnered with EnCap for the third time in Plantation III. Again management successfully closed an attractive acquisition in the Permian Basin and successfully implemented a drilling and production enhancement program. In July 2007, Plantation III entered into a definitive agreement to sell its assets to EV Energy Partners, L.P. (Nasdaq: EVEP) for $160 million.
  • Plantation IV: Formed in August 2007, Plantation IV acquired producing Permian Basin properties and used its expertise to realize value through (i) operational economies of scale, (ii) recompletions in existing wells, (iii) secondary recovery efforts and (iv) horizontal drilling.  The properties were sold to Merit Energy in November 2011 for $326.3 million.  

EnCap currently is partnered with the Plantation management team in Plantation V, formed in January 2012.

Plantation Petroleum Company

Plantation Petroleum Company

Investment Realized: 2003, 2005, 2007, 2011

Headquartered in Houston, Plantation Petroleum Company is an upstream oil and gas company focused on opportunities in the Permian Basin.

  • Plantation I: In July 2002, EnCap invested growth capital to facilitate Plantation’s acquisition of a publicly held company focused in the Permian Basin. The Plantation management team implemented a successful development plan and sold to Forest Oil Corporation (NYSE: FST) in December 2003.
  • Plantation II: Subsequent to the sale of Plantation I to Forest Oil, management again partnered with EnCap to form Plantation II in November 2003. Using a combination of bank debt and equity, Plantation II closed a highly attractive acquisition in Southeast New Mexico and created additional value by increasing production at a minimal cost. In June 2005, Plantation II sold to Range Resources Corporation (NYSE: RRC) for $116.5 million.
  • Plantation III: In December 2005, management partnered with EnCap for the third time in Plantation III. Again management successfully closed an attractive acquisition in the Permian Basin and successfully implemented a drilling and production enhancement program. In July 2007, Plantation III entered into a definitive agreement to sell its assets to EV Energy Partners, L.P. (Nasdaq: EVEP) for $160 million.
  • Plantation IV: Formed in August 2007, Plantation IV acquired producing Permian Basin properties and used its expertise to realize value through (i) operational economies of scale, (ii) recompletions in existing wells, (iii) secondary recovery efforts and (iv) horizontal drilling.  The properties were sold to Merit Energy in November 2011 for $326.3 million.  

EnCap currently is partnered with the Plantation management team in Plantation V, formed in January 2012.

Headquartered in Houston, Plantation Petroleum is an upstream oil and gas company focused on acquire-and-exploit opportunities in the Permian Basin.

2003, 2005, 2007, 2011

Protege Energy

Investment Realized: 2008, 2012

Protégé Energy is a Tulsa-based independent oil and gas company focused on acquiring and developing assets in the domestic onshore basins of the United States.

While partnered with EnCap, the Protégé team has successful realizations in both the Andadarko/Arkoma basins and Marcellus/Utica Shale plays.

  • Protégé I: EnCap and the Protégé management team formed Protégé in 2004. The company pursued an acquire-and-exploit strategy as well as a lease-and-drill strategy. Protégé I made strategic acquisitions in the Anadarko and Arkoma Basins, and, through strategic acquisitions and development drilling, Protégé I grew its production to nearly 4 MMcfed, proved reserves to 43 Bcfe and 3P reserves to 69 Bcfe by mid-2008. Notable reservoir targets included the Granite Wash in the Texas Panhandle and the Woodford Shale in Eastern Oklahoma. In 2008, Protégé I sold the majority of its assets in several transactions to Forest Oil, EV Energy Partners and Newfield.
  • Protégé II: Subsequent to the sale of Protégé I, EnCap again partnered with management to form Protege II in late 2008. Over the ensuing year, Protégé II formed a strategic partnership with a Columbus, Ohio-based producer, then pursued a lease-and-drill strategy for the liquids-rich Marcellus and Utica Shale plays in Southeast Ohio. Protégé II created a contiguous 20,000-acre lease position in one of the most abundant areas of the liquids-rich Marcellus, growing its 3P reserves to 1,300 Bcfe by mid-2012. Protégé II sold its Marcellus/Utica assets to Statoil at year-end 2012.

EnCap currently is partnered with Protégé management in Protégé III, which was formed in 2013.

Protege Energy

Protege Energy

Investment Realized: 2008, 2012

Protégé Energy is a Tulsa-based independent oil and gas company focused on acquiring and developing assets in the domestic onshore basins of the United States.

While partnered with EnCap, the Protégé team has successful realizations in both the Andadarko/Arkoma basins and Marcellus/Utica Shale plays.

  • Protégé I: EnCap and the Protégé management team formed Protégé in 2004. The company pursued an acquire-and-exploit strategy as well as a lease-and-drill strategy. Protégé I made strategic acquisitions in the Anadarko and Arkoma Basins, and, through strategic acquisitions and development drilling, Protégé I grew its production to nearly 4 MMcfed, proved reserves to 43 Bcfe and 3P reserves to 69 Bcfe by mid-2008. Notable reservoir targets included the Granite Wash in the Texas Panhandle and the Woodford Shale in Eastern Oklahoma. In 2008, Protégé I sold the majority of its assets in several transactions to Forest Oil, EV Energy Partners and Newfield.
  • Protégé II: Subsequent to the sale of Protégé I, EnCap again partnered with management to form Protege II in late 2008. Over the ensuing year, Protégé II formed a strategic partnership with a Columbus, Ohio-based producer, then pursued a lease-and-drill strategy for the liquids-rich Marcellus and Utica Shale plays in Southeast Ohio. Protégé II created a contiguous 20,000-acre lease position in one of the most abundant areas of the liquids-rich Marcellus, growing its 3P reserves to 1,300 Bcfe by mid-2012. Protégé II sold its Marcellus/Utica assets to Statoil at year-end 2012.

EnCap currently is partnered with Protégé management in Protégé III, which was formed in 2013.

A Tulsa-based independent oil and gas company focused on acquiring and developing assets in the domestic onshore basins of the United States.

2008, 2012

Talon Oil & Gas

Investment Realized: 2010

Talon Oil & Gas was a Dallas-based independent oil and gas company focused on creating value through the acquisition and exploitation of producing properties in the Barnett Shale, East Texas and the Texas Panhandle. Talon was formed by a team of seasoned E&P executives with over 180 years of aggregate experience in all facets of the upstream oil and gas business. Furthermore, the majority of the team has worked together for 19 years in key senior positions at Coda Energy, Belco Oil & Gas, Westport Resources, Kerr-McGee Corporation and Talon, where they have been involved in $27.5 billion of oil and gas transactions.

After its formation in January 2007, Talon completed $551 million of producing property acquisitions yielding an aggregate 537 Bcfe of proved reserves and 83 MMcfe/d of daily production for an attractive $1.03/Mcfe and $6,607/Mcfe/d. In addition to creating value through privately negotiated acquisitions of quality assets for below-market prices, the team utilized its technical expertise to further enhance returns through strategic exploitation and operational improvements. As a result of these efforts the aggregate PDP, total proved and 3P reserves of the properties increased by 25%, 58% and 65%, respectively. In December 2010, Talon closed the sale of its assets for a combined $1 billion to EnerVest (Barnett), Devon (Texas Panhandle) and an undisclosed third party (East Texas). 

EnCap currently is partnered with the Talon management team in Talon Oil & Gas II, which was formed in January 2011.

Talon Oil & Gas

Talon Oil & Gas

Investment Realized: 2010

Talon Oil & Gas was a Dallas-based independent oil and gas company focused on creating value through the acquisition and exploitation of producing properties in the Barnett Shale, East Texas and the Texas Panhandle. Talon was formed by a team of seasoned E&P executives with over 180 years of aggregate experience in all facets of the upstream oil and gas business. Furthermore, the majority of the team has worked together for 19 years in key senior positions at Coda Energy, Belco Oil & Gas, Westport Resources, Kerr-McGee Corporation and Talon, where they have been involved in $27.5 billion of oil and gas transactions.

After its formation in January 2007, Talon completed $551 million of producing property acquisitions yielding an aggregate 537 Bcfe of proved reserves and 83 MMcfe/d of daily production for an attractive $1.03/Mcfe and $6,607/Mcfe/d. In addition to creating value through privately negotiated acquisitions of quality assets for below-market prices, the team utilized its technical expertise to further enhance returns through strategic exploitation and operational improvements. As a result of these efforts the aggregate PDP, total proved and 3P reserves of the properties increased by 25%, 58% and 65%, respectively. In December 2010, Talon closed the sale of its assets for a combined $1 billion to EnerVest (Barnett), Devon (Texas Panhandle) and an undisclosed third party (East Texas). 

EnCap currently is partnered with the Talon management team in Talon Oil & Gas II, which was formed in January 2011.

A Dallas-based independent oil and gas company focused on creating value through the acquisition and exploitation of producing properties in the Barnett Shale, East Texas and the Texas Panhandle.

2010

Tracker Resources Development II

Investment Realized: 2010

Tracker Resources Development II was a Denver-based, independent oil and gas company focused on creating value through the acquisition and development of leasehold and producing properties. Tracker was led by a highly experienced team of professionals with extensive oil and gas related experience with both major and independent companies, with a historical track record of creating value in the Rocky Mountain region.

Since formation in May 2006, Tracker acquired and developed a 150,000-net-acre position in the Bakken Shale in North Dakota. The company successfully established a significant reserve base across its position through drilling more than 40 operated wells utilizing enhanced horizontal drilling techniques. Through its development, Tracker partnered with Red Arrow Energy, another EnCap portfolio company, as well as a large third-party investor through an entity they jointly formed, TRZ Energy. In December 2010, TRZ sold its Bakken assets to Hess Corporation (NYSE: HES) for approximately $1.1 billion of cash consideration.

EnCap currently is partnered with the same Tracker management team through Tracker Resources III.

Tracker Resources Development II

Tracker Resources Development II

Investment Realized: 2010

Tracker Resources Development II was a Denver-based, independent oil and gas company focused on creating value through the acquisition and development of leasehold and producing properties. Tracker was led by a highly experienced team of professionals with extensive oil and gas related experience with both major and independent companies, with a historical track record of creating value in the Rocky Mountain region.

Since formation in May 2006, Tracker acquired and developed a 150,000-net-acre position in the Bakken Shale in North Dakota. The company successfully established a significant reserve base across its position through drilling more than 40 operated wells utilizing enhanced horizontal drilling techniques. Through its development, Tracker partnered with Red Arrow Energy, another EnCap portfolio company, as well as a large third-party investor through an entity they jointly formed, TRZ Energy. In December 2010, TRZ sold its Bakken assets to Hess Corporation (NYSE: HES) for approximately $1.1 billion of cash consideration.

EnCap currently is partnered with the same Tracker management team through Tracker Resources III.

A Denver-based, independent oil and gas company focused on creating value through the acquisition and development of leasehold and producing properties.

2010