New E&P startup Espada Energy Partners is hunting for North American onshore M&A. (Source: Shutterstock.com)
Espada Energy Partners is launching to pursue acquisitions in onshore basins in North America, joining a new wave of startup E&P firms.
Espada closed an equity commitment from funds managed by Carnelian Energy Capital LP, the company announced June 16.
Houston-based Espada is led by CEO Kevin Goodman, previously a senior member of the Carnelian investment team.
“This is a compelling time in the energy markets, and Carnelian’s flexible mandate gives us a competitive advantage in the current environment,” Goodman said.
The Espada management team also includes Geoff Vernon, who previously served as vice president of business development for Chord Energy. He also held roles with Earthstone Energy and Southwestern Energy.
“We are excited to work with Kevin and Geoff to capitalize on the opportunity set ahead,” said Carnelian Partner Tomas Ackerman. “The team’s deep relationships, commercial acumen and technical expertise across a variety of basins is a real differentiator.”
In January, Carnelian closed a sale of Appalachia portfolio company Apex Energy II to CNX Resources for $505 million. The bolt-on deal expanded CNX’s stacked Marcellus and Utica undeveloped leaseholds.
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New startups
Espada is the latest among several startup E&P companies scouring North America for M&A opportunities.
The team that previously built and sold Utah’s XCL Resources reloaded by launching X2 Resources earlier this year. X2 is backed by EnCap Investments, Westlawn Group and Rice Investment Group.
XCL sold SM Energy and non-operated partner Northern Oil & Gas (NOG) for $2.6 billion last year.
Rockcliff Energy III, backed by Quantum Capital Group, is exploring M&A opportunities mainly in the Haynesville Shale and South Texas.
The previous iteration of the company, Rockcliff II, sold its East Texas Haynesville gas assets for $2.7 billion to TG Natural Resources (TGNR) in late 2023. TGNR is a subsidiary of Japanese utility Tokyo Gas.
Kayne Anderson is backing two new startups, including Oklahoma City-based South Wind Exploration & Production. South Wind includes team members from Flywheel Energy, which exited its gas position in Arkansas’ Fayetteville Shale earlier this year.
Terra Energy Partners II announced its launch earlier this month with Kayne Anderson commitments. The oil and gas startup is led by CEO BJ Reynolds and COO Wes Hobbs, who previously held leadership roles at Terra Energy Holdings LLC, one of the top producers in Colorado’s Piceance Basin.
Terra I produced approximately 600 MMcfe/d of net production at its peak and drilled and completed more than 700 wells over a nine-year run in the Piceance.
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