Laredo Energy

 

Portfolio

Investment: 
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.