KKR Forms Partnership with RPM Energy LLC New Platform Seeks to Support Development of Unconventional Resources in North America
October 26, 2010 12:33 PM Eastern Daylight Time NEW YORK--(EON: Enhanced Online News)--Kohlberg Kravis Roberts & Co. (together with its affiliates, “KKR”) today announced the formation of a partnership with RPM Energy LLC (“RPM”), a privately-owned oil and gas exploration and development company led by veteran energy professionals Claire Scobee Farley and David Rockecharlie. The partnership, RPM Energy Partners L.P. (the “Partnership”), will target opportunities to be a joint venture partner with E&P companies that are well positioned in the large unconventional resource plays throughout North America. Financial details and terms of the transaction were not disclosed.
“Over the last few years, we have been building a platform to invest in both unconventional and conventional oil and gas assets. The energy industry, with its complex dynamics, continues to be exciting and full of opportunities for long-term partnerships” .“KKR is excited to partner with Claire and David. Both have a deep knowledge of the energy sector – from operations to business development – and we are thrilled to partner on investments that will develop much needed oil and natural gas reserves across North America,” Marc Lipschultz, Member of KKR and Global Head of KKR’s Energy and Infrastructure business, said.
The current industry environment is ripe with opportunity driven by the significant capital requirements facing oil and gas producers as they seek to develop newly acquired shale resource positions. “We estimate that the “Big Six” shales alone could require in excess of $1.0 trillion of total capital throughout their lifecycles in order to maintain lease positions, construct infrastructure and develop the underlying hydrocarbons,” said David Rockecharlie, Co-founder of RPM.
“With so many high-quality companies, of every size, looking for partners with capital and technical expertise to help them evaluate and develop their shale acreage, we see tremendous opportunity. With KKR’s backing, we expect to build an exciting new oil and gas company with a portfolio of asset positions in several of the unconventional resource plays,” Claire Scobee Farley, Co-founder of RPM said.
The Partnership will invest in or acquire positions in unconventional oil and gas properties in a wide range of basins. RPM aims to structure creative, mutually rewarding industry partnerships with existing land and working interest owners.
The formation of the Partnership is an extension of KKR’s oil and gas strategy. KKR has been investing in the energy sector and the oil and gas sector, in particular, for more than twenty years, dating back KKR’s investment in Union Texas Petroleum in 1985. Today, KKR’s global energy and infrastructure business spans the globe and covers the full energy supply chain.
“Over the last few years, we have been building a platform to invest in both unconventional and conventional oil and gas assets. The energy industry, with its complex dynamics, continues to be exciting and full of opportunities for long-term partnerships,” John Bookout, Managing Director of KKR, said.
KKR’s recent oil and gas transactions include East Resources, Hilcorp Resources and KKR’s conventional oil and gas platform, formed with Premier Natural Resources.