Echo Minerals, an affiliate of investment firm Echo, has completed the sale of mineral and royalty interests for more than half a billion dollars. The exact value of the transaction wasn’t disclosed.

The transaction involved a portion of Permian and Anadarko basin leasehold to private equity firm Sixth Street Partners, Echo said in a June 11 press release.

The transaction follows a 3% divestiture of Echo’s mineral and royalty portfolio valued at $35.4 million in early 2022. Endeavor Resources and Pioneer Natural Resources, which completed a sale to Exxon Mobil in May, were the primary operators in the area.

Echo minerals map
(Source: Echo)

Echo purchased what it calls one of the “largest oil and gas mineral royalty assets in the world” between 2015 and 2020, according to its website.

"The significant sale of our world-class mineral asset marks the start of a new era for Echo,” said Christian Kanady, founding partner and CEO of Echo. “While energy remains a core focus of our strategy, we look forward to unlocking and advancing American innovation by making transformative investments in high-growth industries going through massive technological disruption.”

Zack Winegrad, a partner at Sixth Street, said the acquisition continues the firm’s focus on growing its mineral and royalty platform.

With proceeds from the transaction, Echo said it will use proceeds from the transaction to investments in projects and enterprises “renewing and advancing American innovation and resiliency in such industries as energy, life science, national security and media & entertainment.”

Evercore Inc. acted as Echo’s financial adviser and law firm Kirkland & Ellis LLP acted as legal counsel. White & Case LLP represented and provided buyer counsel to Sixth Street.