Glendale Energy Ventures LLC partnered with a San Francisco-based investment firm TPG Sixth Street Partners on June 12 to fund nonop acquisitions.
The partnership includes an initial $500 million in capital commitments. Glendale said in a release the partnership has already deployed $55 million of the funds for the acquisition of nonoperated interests in drilling pads located in Oklahoma’s Stack play. The remaining capital will be used to acquire and develop upstream oil and gas assets across the U.S.
Glendale is a private oil and gas company based in Houston. Led by industry veterans Brent Grundberg and Vignesh Proddaturi, the company focuses on de-risked U.S. onshore resource plays through asset level acquisitions, drilling joint ventures and farm-ins.
Through its new partnership, Glendale said it aims to provide capital solutions to operators by structuring investments in nonoperated interests and operated-by-others (OBO) acquisitions.
As spending within cash flow has increasingly become the norm for oil and gas, drilling joint ventures—or Drillcos—are an alternative source of funding for E&Ps. The need of capital has become particularly critical as operators head toward full-scale development mode.
“We believe there is more demand than ever for partnership capital to allow operators to achieve their full-scale development plans,” Glendale Co-Founder Grundberg said in a statement on June 12.
As part of its strategy, Glendale seeks to build “long term relationships with operators.” The company evaluates acquisition opportunities from all sources but specifically focuses on non-marketed assets.
Glendale Co-Founder Proddaturi added, “We look forward to building upon our existing relationships, forming new collaborations with top-tier producers and being the partner of choice for nonoperated capital budgets and OBO divestitures.”
Prior to co-founding Glendale, Proddaturi was a partner at Millennial Energy Partners where he led the company’s entry into the Stack play. His career also includes leadership roles at Legend Natural Gas, Seneca Resources, Milagro Exploration and Sabco Oil and Gas. He began his career at Intertek Westport as a petroleum engineer performing special core analysis, according to Glendale’s website.
Meanwhile, before founding Glendale, Grundberg served as a co-founder and head of energy at Energy & Infrastructure Capital, a subsidiary of Harbinger Group, where he was responsible for origination, structuring, negotiating, investing, asset management and strategic planning. He also previously worked at UnionBanCal Equities, GE Energy Financial Services and Siemens Financial Services.
Willkie Farr & Gallagher LLP represented Glendale Energy Ventures for the TPG Sixth Street Partners transaction. The law firm’s deal team was led by partner Michael De Voe Piazza. Meanwhile, Vinson & Elkins advised TPG Sixth Street Partners, led by partner Shamus Crosby.
TPG Sixth Street Partners is a global finance and investment business with over $30 billion in assets under management. The firm was co-founded in 2009 by the firm’s managing partner, Alan Waxman, and TPG Sixth Street’s management team.
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