EIV Capital LLC and ARM Energy Holdings LLC formed a partnership on Jan. 13 focused on acquiring passive oil and gas interests across the Lower 48.
The upstream joint venture, ARM Resource Partners LLC, will be led by Claire Harvey, an industry and investment veteran. Harvey most recently founded Gryphon Oil and Gas, a Blackstone-sponsored company focused on acquiring nonoperated oil and gas interests in the Permian Basin.
In a statement on Jan. 13, Harvey commented: “I am excited to lead the ARM Resources team as we partner with EIV to build a best-in-class upstream investment platform focused on acquiring passive oil and gas interests across the Lower 48.”
Founded in 2009, EIV Capital is a Houston-based private equity firm specializing in providing growth equity to the North American energy industry. Also headquartered in Houston, ARM Energy Holdings is a premier producer services firm, active in every sector of the energy value chain across all major North American oil and gas basins.
Harvey continued: “The combination of EIV’s investment expertise and backing, along with ARM’s decades-long, proven track record of providing outstanding advice and service to its clients makes this venture advantageous for both ARM’s current client base and new producers.”
The ARM Resources JV will focus on making certain investments in various nonoperating working interests, producing and non-producing mineral interests, royalty interests and other passive investments within the U.S., according to a joint press release from the two firms.
In the release, leaders from EIV and ARM both noted seeing upstream opportunities emerging in the current environment.
“We are grateful to announce the formation of ARM Resources and our new partnership with Claire Harvey and ARM,” Greg Davis, partner at EIV, said. “This strategic combination of talented leadership creates an ideal platform to access upstream opportunities during, what EIV views as, a compelling time to invest. We look forward to helping producers meet their strategic needs and working collectively to navigate challenging times.”
Meanwhile, Zach Lee, CEO of ARM, said: “We are elated to partner with EIV on this important venture, especially during this critical time in our industry. We feel strongly that the risk-reward paradigm in upstream oil and gas has never been better and we are confident we can provide win-win solutions for our producer partners and for ARM Resources. Additionally, we are pleased to welcome Claire Harvey to the ARM family, as we have known and respected her for years.”
U.S. oil producer Apache raised its project spending forecast to $1.1 billion for this year as oil prices have improved since its previous outlook of keeping upstream expenses below a billion dollars.
Private equity’s interest in oilfield services is expanding the definition of what is investable in the OFS space.
The NorTex Midstream deal follows the acquisition of Tall Oak II and III by Tailwater Capital last month in Oklahoma’s Arkoma STACK.