Pickering Energy Eyeing $300M Capital Deployment for Permian Oil, Natural Gas Interests

Pickering Energy Partners (PEP) said Wednesday it is looking to acquire and develop Permian Basin oil and gas interests alongside public and private operators.


The new entity, PEP Development, was formed in alliance with “a large institutional investor” to focus on deploying at least $300 million of equity capital, said the Houston-based financial services and investment firm.

“We are in an environment where oil and gas is strategic again, where energy security and trustworthy barrels are rising as a priority for companies and consumers,” said PEP’s Dan Pickering, chief investment officer. “We are excited to invest across the Permian and play our part in bringing U.S. production to the marketplace.”

The announcement comes amid a flurry of announced mergers, acquisitions and infrastructure expansions in the Permian amid a bullish outlook for oil and natural gas pricing.

“As with prior PEP investment partnerships, PEP Development will lean on our team’s history of working with quality institutional investors and established, experienced Permian operators who share the goal of successfully acquiring and stewarding energy and natural resources,” added President Walker Moody. 

Managing director Lex Hochner said the new firm’s drilling opportunities may include authorization for expense acquisitions, farm-in or drill-to-earn opportunities, drill-ready acreage, or other structured opportunities. 

“We have a lot of flexibility in how we form partnerships,” Hochner added. “Fundamentally, we deliver a capital solution in a challenging capital markets environment and are excited to build great businesses with great operators.”

PEP Development will focus on drilling and development capital opportunities from $50 million to $150 million, management said.

The Permian rig count stood at 350 as of July 8, up 48% year/year, according to the latest tally by Baker Hughes Co.

Source: https://www.naturalgasintel.com/pickering-energy-eyeing-300m-capital-deployment-for-permian-oil-natural-gas-interests/