Paloma Partners

 

Portfolio

Investment: 
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.