Minerals Private Equity: Weathering the Storm

Private-equity companies and their mineral portfolios have been quick in their response to the dramatic slowdown of drilling activity in the shale patch.

Worker and pumpjacks

(Source: iurii/Shutterstock.com)

Faced by a barrage of setbacks including crippling crude prices and shrinking storage capacity, produc­ers across shale basins continue to shut in thousands of wells. Though the complete picture is yet to be seen, private-equity firms and their mineral portfolios are brac­ing for the likelihood of distressed market conditions by exercising caution and practicing greater discipline.

However, despite the market uncertainty, private-equity firms have no plans to slow down acquisitions and are confident the crisis will create new opportunities for their mineral portfolio companies.

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Faiza Rizvi

Faiza Rizvi is a senior editor of ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.