BlackGold Capital Management LP acquired a diverse portfolio of mineral and royalty interests in the Midland Basin in West Texas, the Houston-based firm said Jan. 22 as it continued what it described as an “opportunistic approach to income-generating investments.”
Founded in 2006, BlackGold is a private investment firm focusing on asset-heavy, cash-flowing investments in the energy industry—a strategy which co-founder Adam Flikerski said the firm’s recent acquisition exemplifies.
BlackGold said 72% of the net royalty acres in the acquired portfolio are leased by operators in the top quartile of active horizontal rig counts in the Midland Basin. Further, the firm added that 99% of the acquired net royalty acreage is leased by operators in the top half. The seller of the assets was not disclosed.
Erik Dybesland, co-founder of BlackGold, also added in a statement: “BlackGold continues to acquire mineral and royalty interests in the core of low-cost basins under best-in-class operators.”
Though it did not disclose the financial terms of this most recent transaction, BlackGold said it has completed acquisitions of mineral and royalty interests totaling roughly $150 million in the past 12 months.
KKR & Co. Inc. holds a 24.9% passive minority interest in BlackGold, according to the company release.
The Alta Mesa transaction represents the sixth acquisition by partnerships between Tom Ward-led Mach Resources and private equity firm Bayou City Energy Management.
Concurrent with a new $400 million equity commitment from EnCap Midstream, Ironwood struck a deal to acquire Twin Eagle midstream assets in South Texas.
The rapid pace and magnitude of production declines by oil producers has finally spilled into the midstream sector, compromising its aggregate credit quality, according to a new report by Moody’s Investors Service.