North Hudson Resource Partners eyes non-operated transactions with new equity fund. (Source: Shutterstock.com/ North Hudson Resource Partners)
North Hudson Resource Partners is advancing its non-operated strategy in the Williston Basin and beyond.
The Houston-based private equity firm closed a fifth non-op fund, North Hudson Production Partners V LP, with $344 million in equity commitments, the firm said May 20. The firm has $1.4 billion in assets under management after the latest closing.
The new fundraising announcement follows closely on the heels of an approximately $125 million acquisition in the Williston Basin last week.
North Hudson teamed up with TXO Partners LP to acquire Quantum Capital Group-backed White Rock Energy’s Elm Coulee assets in North Dakota and Montana for a total of $475 million.
North Hudson also has a growing operated strategy. The firm owns LOGOS Resources, among the most active horizontal developers in the San Juan Basin gas play.
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Fifth non-op fund
North Hudson’s fifth non-op fund will target acquisitions in the U.S. and Canada, typically ranging between $1 million to over $150 million. But the firm won’t rule out large-scale M&A.
The firm is pursuing drilling partnerships, joint-bid acquisitions with public and private operators and opportunities to acquire AFEs, acreage, minerals and PDP assets.
In the Lower 48, North Hudson currently has interests in the Haynesville and Utica shales and the Permian, Williston, Denver-Julesburg (D-J) and San Juan basins. The firm also has holdings in Canada.
North Hudson’s latest deal in the Elm Coulee Field is an example of the growing non-op joint-bid acquisition strategy.
North Hudson acquired a 30% non-op stake in the White Rock assets, while TXO picked up the 70% controlling interest. The Elm Coulee acquisition is expected to close in the third quarter.
The acquisition adds 6,800 boe/d (93% liquids) and proved reserves of 25 MMboe net to TXO, the company said May 13. Production volumes net to North Hudson were not disclosed.
It’s a historic part of the Williston Basin: On May 26, 2000, the first stimulated horizontal oil well targeting the middle Bakken Formation was landed in Elm Coulee, marking the beginning of the modern Bakken play.
“We believe our significant asset base, which includes over 1,600 horizontal non-operated wells, in addition to our transaction history and network, have made us an effective partner for operators and working interest owners seeking a partner to enhance their assets,” said North Hudson Managing Partner Mark Bisso.
Other non-op players, such as Northern Oil & Gas (NOG), are inking similar joint-bid acquisitions with larger operators. NOG has teamed up with publics SM Energy, Vital Energy and Earthstone Energy on Permian and Uinta Basin transactions.
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LOGOS Resources
North Hudson owns LOGOS Resources, the fourteenth-largest natural gas producer in New Mexico.
LOGOS produced over 68 Bcf (gross) in New Mexico in 2024, or an average of around 186 MMcf/d, according to state data.
LOGOS is the second-largest San Juan gas producer behind Hilcorp Energy, which acquired ConocoPhillips’ legacy assets in the basin in 2017.
SIMCOE is the third-largest San Juan gas producer and operates a gas asset previously held by supermajor BP. SIMCOE was acquired by German investment firm IKAV in 2020.
LOGOS is also expanding drilling into the Colorado side of the basin, Bisso told Hart Energy. The company recently finished drilling its first horizontal gas well in Colorado and plans to drill two additional horizontals this year.
Elevated commodity prices are expected to drive increased drilling activity in natural gas basins across the country.
Henry Hub forward prices averaged $4.07/MMBtu over the next 12 months; 24-month strip averages $4.13/MMBtu as of May 20.
San Juan producers can capture healthy premiums over Henry Hub prices by moving gas to West Coast markets. Western U.S. gas producers are also excited about future demand from new LNG export projects on Mexico’s Pacific coast.
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