July 9 Private equity firm KKR & Co LP
and energy-focused peer Riverstone Holdings LLC will form a U.S.
oil and natural gas venture that would be one of the largest
producers in the Barnett Shale in Texas, they said on Wednesday.
The new entity, Trinity River Energy LLC, will be
headquartered in Fort Worth, Texas, and led by Chris Hammack,
who heads Legend Production Holdings LLC, the Riverstone entity
that is contributing assets to the joint venture. The Barnett
region is known for its shale oil and natural gas resources.
KKR is providing assets from its natural resources funds,
which were formed in 2010. At the end of March it had completed
six separate transactions, acquiring nearly $1.2 billion of
assets in Texas, Louisiana, and Mississippi.
Production from those assets was approximately 130 million
cubic feet equivalent per day (MMcfe/d). They are operated by
Tulsa, Oklahoma-based Premier Natural Resources LLC. The
announcement about Trinity made no reference to the future of
KKR has traditionally partnered with other operators in its
oil and gas investments. Last March, it announced another
partnership for its oil and gas platform with Fleur de Lis
Fleur de Lis and KKR will work together on other
acquisitions. KKR said in its statement on Trinity that future
assets "will not be acquired by or otherwise form part of
KKR has invested or committed about $4.3 billion to oil and
gas investments since 2009.
(Reporting by Mike Stone in New York; Editing by Jeffrey