Hilcorp Energy Co, a closely held U.S. independent exploration and production company, on Dec. 18 said it had formed a partnership with private equity firm Carlyle Group LP to acquire and develop North American oil and gas properties.
Carlyle's Energy Mezzanine Opportunities Fund, LP and Carlyle Energy Mezzanine Opportunities Fund II, LP have agreed to invest up to $1.24 billion in the newly formed partnership called Hilcorp Energy Development LP.
Oil and gas companies are increasingly looking to private equity firms as low commodity prices sap cash flow and access to capital markets is squeezed. U.S. crude oil prices are hovering around seven-year lows amid a global supply glut.
On Dec. 18, Moody's said it was reviewing 29 oil and gas companies for downgrade, citing weak oil and gas prices. Hilcorp was on the rating agency's list.
Houston-based Hilcorp, founded by Jeffrey Hildebrand in 1989, has operations in the Gulf Coast of Texas and Louisiana, the U.S. Northeast and Alaska.
Activist investor Carl Icahn formally launched on Thursday a proxy fight against Occidental Petroleum to win control of four board seats, a regulatory filing showed, after talks with the oil company's CEO failed to reach an agreement.
Kimmeridge said the combination of its minerals business with Midland, Texas-based Desert Royalty will create the largest pure-play mineral and royalty company in the Delaware Basin by net royalty acres.
U.S. private equity firm Arcline Investment Management said it would buy the reciprocating comprehension division of Baker Hughes, a GE company.