Pickering Energy Partners (PEP), a Houston-based energy investment firm, announced a strategic joint venture with Henry Resources, a long-standing Permian Basin operator, on September 24, 2019. This partnership aims to acquire producing oil and gas assets in the Permian Basin, leveraging Henry Resources’ extensive operational experience of over 50 years in the region.
Permian Basin Acquisition Strategy
The joint venture, with a minimum investment target of $500 million, will focus on acquiring producing asset packages. Henry Resources will operate these assets, capitalizing on their deep understanding of the Permian Basin and established local relationships. The strategy incorporates a significant current yield component and a robust hedging program designed to mitigate the risks associated with fluctuating crude oil prices. This approach positions the joint venture as a preferred buyer in the Permian Basin due to its operational expertise, strong local connections, and readily available acquisition capital.
Combining Expertise: Pickering Energy Partners and Henry Resources
Pickering Energy Partners, founded by Dan Pickering in 2004, initially focused on institutional energy research. The firm evolved in 2007 through a partnership with Bobby Tudor and Maynard Holt to form Tudor, Pickering, Holt & Company. Currently headquartered in Houston, Texas, PEP, under Pickering’s leadership and an experienced team, strives to deliver long-term value to clients and positively impact the companies and communities in which it invests.
Henry Resources, founded by Jim Henry in 1969, boasts a rich 50-year history in the Permian Basin. The company has drilled and completed over 1600 vertical wells and more than 80 horizontal wells, primarily in the Midland and Delaware Basins. This extensive operational history provides a solid foundation for the joint venture’s acquisition and operational strategy.
Legal Representation
Willkie Farr & Gallagher LLP represented Pickering Energy Partners in this transaction. The legal team was led by partners Michael De Voe Piazza and Mark Proctor, with support from associates David Aaronson, Lynn Abell, and Audra White.
A “Buyer of Choice” in the Permian
The combined expertise of Pickering Energy Partners’ financial acumen and Henry Resources’ operational prowess creates a formidable partnership in the Permian Basin. With a clear acquisition strategy, significant capital commitment, and a focus on current yield mitigated by hedging, the joint venture is well-positioned for success in this prolific oil and gas region. This strategic alliance aims to capitalize on opportunities in the Permian Basin and generate substantial returns for investors.
