Pickering Energy Partners to Deploy $300 Million in Permian Basin

Pickering Energy Partners on July 13 formed a “strategic partnership” to acquire and develop oil and gas assets, the Houston-based investment firm said.

The partnership, with a large, unnamed institutional investor, will target $300 million of capital deployment alongside “premier operators” in the Permian Basin, according to a company release.

“We are in an environment where oil and gas is strategic again, where energy security and trustworthy barrels are rising as a priority for companies and consumers. We are excited to invest across the Permian and play our part in bringing U.S. production to the marketplace,” commented Dan Pickering, chief investment officer and the firm’s founder.

The Pickering Energy Partners partnership will focus on drilling and development capital opportunities from $50 million to $150 million. Drilling partnerships may include authorization for expense (AFE) acquisitions, farm-in or drill-to-earn opportunities, drill-ready acreage or other structured opportunities, said Lex Hochner, managing director at the firm.

“We are excited to invest across the Permian and play our part in bringing U.S. production to the marketplace.”—Dan Pickering, Chief Investment Officer, Pickering Energy Partners

“We have a lot of flexibility in how we form partnerships,” Hochner said. “Fundamentally, we deliver a capital solution in a challenging capital markets environment and are excited to build great businesses with great operators.”

In total, the partnership, which the firm refers to as PEP Development, will focus on deploying at least $300 million of equity capital alongside highly experienced public and private operating companies in the Permian Basin.

“As with prior [Pickering Energy Partners] investment partnerships, PEP Development will lean on our team's history of working with quality institutional investors and established, experienced Permian operators who share the goal of successfully acquiring and stewarding energy and natural resources,” added Walker Moody, president of Pickering Energy Partners.

Latham & Watkins LLP advised Pickering Energy Partners on the strategic partnership with a corporate deal team led by Houston Investment Funds partner Ivana Rouse and Houston M&A partner James Garrett.

Pickering Energy Partners is a Houston-based energy financial services and investment firm that has deployed more than $15 billion across all energy sub-sectors over the past 30 years, according to the firm’s release on July 13.

Dan Pickering started Pickering Energy Partners, the predecessor firm to Tudor, Pickering, Holt & Co., in 2004. Prior to Pickering Energy Partners, he served as the president of Tudor, Pickering, Holt & Co. (TPH), and chief investment officer of TPH Investment Management.