Venado Oil and Gas, LLC and KKR will acquire the operated and non-operated Eagle Ford assets of Cabot Oil & Gas Corporation (ticker: COG) for a purchase price of $765 million.
Venado and KKR acquired interests which include approximately 303 gross/203 net wells and 74,400 net acres situated primarily in the Eagle Ford oil window of South Texas (Atascosa, Frio and LaSalle counties). During the fourth quarter of 2017, the assets produced 15,656 net BOEPD (85% oil, 5% natural gas and 10% NGLs).
Venado CEO Scott Garrick said, “The Cabot acquisition is a high-quality asset positioned in the oil fairway of the Eagle Ford. The combination of a strong production base and an attractive inventory of future drilling locations fit well with our disciplined business model of operating with free cash flow while supporting long term growth. We will continue to execute on our Eagle Ford pure-play strategy to consolidate premier liquids-rich assets.”
David Rockecharlie, member and head of energy real assets for KKR, commented, “We are excited to continue to build a first-in-class Eagle Ford asset position alongside Scott and his team. We continue to see an attractive market opportunity throughout the Eagle Ford trend and believe we are well positioned for future growth…”
As of the closing date, the Venado and KKR partnership will hold interests in 112,000 net acres, producing over 43,000 BOEPD from the Eagle Ford trend of South Texas.
The Venado partnership is principally funded by KKR’s Energy Income and Growth Fund I (EIGF). EIGF manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States. KKR has made more than ten investments in the Eagle Ford to date.
