Ensign Natural Resources Announces Purchase of Acreage and a Reduction in its Future Midstream Rates
HOUSTON, Aug. 18, 2020 /PRNewswire/ -- Ensign Natural Resources LLC ("Ensign" or the "Company") announced today the purchase of Eagle Ford Shale ("EFS") and Edwards ("Edwards") acreage in South Texas from Newpek LLC ("Newpek"). The Newpek acquisition includes approximately 5,700 net acres in Bee, DeWitt, Karnes, and Live Oak Counties and current net production of approximately 2,200 barrels of oil equivalent per day. This acquisition increases Ensign's current ownership in the leases and wells it acquired from Pioneer Natural Resources USA, Inc. ("Pioneer") in 2019.
Ensign concurrently announced that it reduced its future gathering, processing and transportation rates with the Company's primary midstream provider.
"We have been focused on securing incremental gains and improving our margins during this unprecedented downturn in the energy market," said Brett Pennington, President and Chief Executive Officer of Ensign. "We believe these transactions will strengthen the asset and our relationship with key partners in the value chain, while lowering future gathering costs and increasing free cash flow. The commitment and support of our equity sponsors have allowed us to be nimble and capture value during these challenging times."
Ensign was formed in late 2017 in partnership with Warburg Pincus, a private equity firm focused on growth investing. As part of the Pioneer acquisition, the Company also secured an equity commitment from the Kayne Private Energy Income Funds, an investment platform dedicated to partnering with high caliber management teams to acquire and develop large producing oil and gas assets in North America.
Sidley Austin LLP acted as legal counsel to Ensign.
About Ensign Natural Resources
The Company is an exploration and production company operating in the Eagle Ford Shale in South Texas. Ensign currently operates approximately 130,000 gross acres and 700+ wells in Bee, DeWitt, Karnes, and Live Oak Counties. The Company is focused on making disciplined investments, continuously improving, and applying modern technology. CEO Brett Pennington is joined by a management team experienced in finding, developing, and exploiting unconventional assets. Ensign is funded through Warburg Pincus and the Kayne Private Energy Income Funds platform. For more information please visit www.ensignnr.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $53 billion in private equity assets under management. Founded in 1966, Warburg Pincus has raised 19 private equity funds, which have invested more than $84 billion in over 900 companies in more than 40 countries. The firm's active portfolio of more than 185 companies is highly diversified by stage, sector, and geography. The firm has invested in energy companies for over 30 years, investing over $14 billion in over 90 companies and is a market leader in building upstream oil and gas companies of scale. For more information please visit www.warburgpincus.com.
About Kayne Anderson
Kayne Anderson Capital Advisors, L.P. ("Kayne"), founded in 1984, is a leading alternative investment management firm focused on energy, infrastructure, real estate, credit and growth equity. Kayne manages approximately $30 billion in assets for institutional investors, family office, high net worth and retail clients and employs nearly 370 professionals in five offices across the U.S. The Kayne Private Energy Income Fund, L.P. is part of Kayne's successful energy private equity practice that has raised over $10 billion since 1998. The Fund was formed in mid-2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America. For more information please visit www.kaynecapital.com.
Contact
Sarah McGrath
(212) 878-6378
[email protected]
SOURCE Ensign Natural Resources LLC
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