Portfolio companies of KKR and Riverstone Holdings LLC have merged to create Trinity River Energy, LLC, according to a news release on July 9, 2014. The two portfolio companies, formerly known as KKR Natural Resources Funds and Legend Production Holdings, LLC, did not reveal the financial terms and the transition is expected to be completed by the end of Q3’14. Riverstone has committed $26.1 billion to 108 separate international investments focused on exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry.
Trinity River Energy will produce a total of 258 MMcfe per day, according to the company site. Its current output consists of roughly 5% of all natural gas produced from the play, according to data from the Texas Railroad Commission. Trinity also holds opportunities in the Permian Basin of Southeast Texas, Louisiana and Mississippi. Its headquarters will be based in Dallas, Texas.
Activity in the Barnett pertaining to rig count has dropped on a yearly basis since 2010, and the number of permitted wells in 2013 was the lowest since 2001. According to data compiled by EnerCom, Inc., the Barnett shale holds an average of 500 MBOE of EUR in its wells – lower than the Marcellus, Woodford and Haynesville. The wells spud per rig in the region have increased by 24% since 2012, however, as the industry has shifted to a more oil-intensive focus in recent years.
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