The fifth iterations of Double Eagle Energy and its minerals subsidiary, Tumbleweed Royalty, have received a $2.5 billion equity commitment from EnCap Investments LP—the day the E&P finalized a $4.1 billion sale to Diamondback Energy. (Source: Shutterstock, Double Eagle Energy)
A day after closing a $4.1 billion cash-and-stock deal with Diamondback Energy, Double Eagle is back in the Permian Basin.
EnCap Investments said April 2 that it will again support Double Eagle and its minerals subsidiary, Tumbleweed Royalty, with a $2.5 billion equity commitment.
Fort Worth, Texas-based Double Eagle V will continue to focus on the Permian and Tumbleweed V will explore mineral and royalties’ opportunities there and in other basins, according to a press release.
Double Eagle and Tumbleweed’s most recent venture in the Midland Basin combined to sell assets and interests to Diamondback and its subsidiary, Viper Energy, in deals totaling more than $5 billion. That includes its recent upstream sale and Viper’s October purchase of Tumbleweed IV’s mineral and royalty interest for $915 million.
The latest companies were formed by co-CEOs John Sellers and Cody Campbell—the same management team that successfully led its predecessor companies.
Double Eagle V and Tumbleweed Royalty V will also retain their commitment from Double Eagle’s management, Elda River Capital Management, affiliates of Apollo Global Management Inc. and other strategic institutional partners.
Campbell and Sellers said they have enjoyed partnering with EnCap and are pleased to expand the relationship.
“We have a great deal of confidence in our team and are proud of the assets we have been able to assemble and the incredible operational efficiency that we have been able to achieve,” the CEOs said. “With the financial strength of our partners, and the tremendous commercial and operational momentum we have built, we are well-equipped to confidently pursue even greater ambitions in the Permian Basin.”
Jason DeLorenzo and Doug Swanson, managing partners of EnCap, said they are excited to continue the partnership after the “tremendous success of Double Eagle IV to date.”
“Cody, John, and the entire Double Eagle team have unique relationships in the industry and continue to impress with their operational excellence and an outstanding track record,” they said.
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