Kraken Resources LLC ("Kraken" or the "Company") is pleased to announce a number of recent transactions, including the all-equity consolidation of the Company’s three predecessor entities, the recent close of a new syndicated credit facility, as well as an increase in Kraken’s total equity commitment from funds managed by Kayne Anderson Capital Advisors, L.P. ("Kayne Anderson"). These transactions provide the Company with substantial access to capital to continue to pursue high-quality acquisition opportunities in the Williston Basin.
On November 17, 2020, Kraken successfully closed on a new, three-year credit facility with unanimous support from the existing lending syndicates of the Company’s three predecessor entities, Kraken Oil & Gas LLC, Kraken Oil & Gas II LLC, and Kraken Oil & Gas III LLC. At close, the Company’s credit facility had a $530 million borrowing base with BOK Financial acting as sole Administrative Agent and Wells Fargo Bank, N.A acting as sole Technical Agent and Syndication Agent. Wells Fargo Securities, LLC served as Left Lead Arranger on the syndication of the credit facility.
Concurrent with the close of the credit facility, Kraken also received an additional equity commitment from its financial sponsor, Kayne Anderson. The upsized commitment results in $525 million of total equity commitments, with over $100 million of available and undrawn equity capital.
Kraken is headquartered in Houston, Texas and is led by co-founders Bruce Larsen and Brad Suddarth. Kraken’s predecessor entities have been operating in the Williston Basin since 2012, demonstrating a proven track record of operational success and a highly competitive cost structure. Kraken’s operating footprint consists of over 130,000 net acres across North Dakota and Montana, with approximately 25,000 net boe/d of production, making Kraken one of the largest private E&P companies in the Williston Basin.
Bruce Larsen, President and CEO of Kraken, commented, "We are excited to announce the closing of our new credit facility and upsized equity commitment from Kayne Anderson. We are highly appreciative of the unanimous support received from our bank group, particularly given today’s challenging lending environment. Furthermore, we look forward to continuing to work closely with Kayne Anderson to pursue compelling opportunities for all of Kraken’s stakeholders."
Mark Teshoian, Managing Partner at Kayne Anderson, said, "We have been partners with the Kraken Resources management team for over eight years and we continue to be impressed by the team’s high-quality asset base, operational execution and commercial expertise. Kayne Anderson’s increased equity commitment is a testament to this. We believe Kraken Resources has the appropriate operational scale, balance sheet and personnel to be well-positioned to take advantage of the current market and ultimately generate strong returns for our investors."
ABOUT KRAKEN RESOURCES
Kraken Resources is a Houston-based, private energy company focused on the acquisition and development of oil and gas assets throughout the Williston Basin.
ABOUT KAYNE ANDERSON
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth equity. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne Anderson’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne Anderson manages over $30 billion in assets (as of 9/30/2020) for institutional investors, family offices, high net worth and retail clients and employs over 350 professionals in five core offices across the U.S. For more information, please visit www.kaynecapital.com.
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Kraken Resources LLC