Spur’s Jay Graham: Take Our Money, Please

Spur Energy Partners struggled to close deals even in a dead A&D market but still plans to spend hundreds of millions more to consolidate in the Permian’s Northwest Shelf.

Jay Graham, Spur Energy

Jay Graham, CEO of Spur Energy Partners, opens the 18th annual A&D Strategies and Opportunities conference in Dallas on Oct. 23. (Source: Hart Energy)

Spur Energy Partners CEO Jay Graham expects to spend as much as $1 billion more as it pursues a consolidation strategy following its recent acquisitions in the Permian Basin.

Spur, led by Graham and other expats from WildHorse Resource Development Corp., has already spent about $1.3 billion in Permian acquisitions. WildHorse sold its assets to Chesapeake Energy Corp. in February for about $4 billion.

However, Graham said Spur—backed by KKR and the Energy & Minerals Group— isn’t reliant on an A&D exit to make money, adding that the prove-up and sell model that typified the early days of the shale revolution has largely passed.

“We’re getting out of the build and flip. It’s been a good 12-year run of doing that,” he said.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.