Grenadier Energy / Stroud Energy

 

Portfolio

Investment: 
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.