As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Frost Cochran, managing partner at Post Oak Energy Capital, said the private equity firm will continue to focus on the Permian Basin while making opportunistic deals as it recently did in the Haynesville Shale.
U.S. family offices have stepped in quickly to fill the void left by other investors while family desks abroad have been slow to move but they’re watching closely, financiers say.
Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.
Asset-backed securitization or ABS, which transforms oil and gas reserves into negotiable financial assets, usually have a hedging element and offer producers another financing option, panelists said Oct. 3 at Hart Energy’s Energy Capital Conference in Dallas.
Bankers from CrossFirst, Texas Capital, BOK Financial and Comerica say that after a sluggish season of asset level deals, divestitures will come from larger-scale M&A, but it will take time.
Lenders with a variety of capital structures are poised to fund the upcoming portfolio rationalization in the post-consolidation era, bankers and deal advisers said at Hart Energy’s Energy Capital Conference.
Amber Energy’s $7.3 billion purchase of Citgo fell well short of analyst’s valuations. PDVSA Ad Hoc expects to appeal the decision soon in its battle to protect its claim on Citgo.
Private equity is a leader in clean energy investment, but it hasn’t been easy.
Carnelian Energy Capital Management LP invested in Zavanna LLC, a longtime producer in the North Dakota Bakken and Three Forks plays.