Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
John Arnold, a former Enron trader and hedge fund honcho known as the “king of natural gas,” is backing an energy-focused credit fund that will aim to take advantage of commodity prices at multi-year highs, sources familiar with the matter said.
Arnold, who reportedly made around $750 million trading natural gas for Enron in the same year it went bankrupt, is backing Energy Opportunities Capital (EOC) Partners LLC through his family office.
Centaurus Capital LP has committed around $500 million in equity for EOC Partners, according to the sources.
EOC Partners is run by two former managing directors of energy private-equity firm EIG—Richard Punches, who headed oil and gas investing at the firm, and Nick Fersen, who worked on credit investments—according to a March 30 filing with the U.S. Securities and Exchange Commission.
While EOC’s filing did not specify a target industry or investment size, the sources said it was exploring debt financing deals of between $50 million and $200 million in the oil and gas exploration and production industry.
The sources requested anonymity to discuss confidential matters. Arnold and his family office did not respond to emails requesting comment. Punches declined to comment.
EIG did not immediately respond to a request for comment.
Arnold rose to become head trader at Enron but after its collapse, which was one of the worst financial scandals in U.S. history, he launched Centaurus Advisors. His bets on natural gas prices at the hedge fund made him the youngest U.S. billionaire in 2007.
In 2012, however, with natural gas prices plummeting, a 38-year-old Arnold retired from managing others’ money to focus on philanthropy with his wife. Through his family office though, he has continued to invest in the energy industry.
The backing of EOC Partners coincides with natural gas trading at levels not seen since the era when Arnold made his fortune, as Russia's invasion of Ukraine crunches global supply just as demand is returning to pre-pandemic levels.
U.S. natural gas futures traded at $8.26 per MMBtu on May 17, more than double their price at the start of the year. Earlier this month, they soared to $9, their highest level since 2008.
Recommended Reading
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
Enbridge Advances Expansion of Permian’s Gray Oak Pipeline
2024-02-13 - In its fourth-quarter earnings call, Enbridge also said the Mainline pipeline system tolling agreement is awaiting regulatory approval from a Canadian regulatory agency.
After Megamerger, Canadian Pacific Kansas City Rail Ends 2023 on High
2024-02-02 - After the historic merger of two railways in April, revenues reached CA$3.8B for fourth-quarter 2023.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Moda Midstream II Receives Financial Commitment for Next Round of Development
2024-03-20 - Kingwood, Texas-based Moda Midstream II announced on March 20 that it received an equity commitment from EnCap Flatrock Midstream.