Piedra Energy and Rock River Minerals said Sept. 27 they closed their fourth capital commitment with Houston-based private-equity firm EnCap Investments LP.
With this closing, the Piedra companies bring their aggregate outstanding commitments to $592 million earmarked for deployment in the Permian Basin, according to the company press release.
“We have enjoyed our relationship with EnCap over the last 11 years,” said Piedra Co-Founder Chip Smith in a statement. “EnCap and Piedra enjoy a common vision for growth and success in the Midland and Delaware Basins.”
The Piedra companies are Midland-based and privately held. Piedra Energy is actively drilling horizontally in multiple benches in the Spraberry/Wolfcamp Trend of the northern Midland Basin. Rock River Minerals will continue its focus on aggressively expanding its mineral and royalty footprint in both the Midland and Delaware Basins.
The parties must now renegotiate a deal that would transfer Breitburn's Permian reserves to investors including Elliott and WL Ross through their participation in a $775 million rights offering.
Double Eagle’s substantial equity commitments from Apollo Global Management will support the company’s ongoing acquisition and development initiatives in the Permian Basin.
The turnaround of Breitburn, which encountered many hurdles during its two-year Chapter 11 bankruptcy, indicates ‘better times in the energy industry.’