Cordillera Energy Partners

 

Portfolio

Investment: 
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.