HOUSTON, Nov. 8, 2021 /PRNewswire/ -- Ensign Natural Resources LLC ("Ensign" or the "Company") announced today the purchase of assets in the Eagle Ford Shale from Reliance Eagleford Upstream Holding LP ("Reliance"). The Reliance acquisition includes approximately 62,000 net acres in Bee, DeWitt, Karnes, and Live Oak Counties and current net production of approximately 18,000 barrels of oil equivalent per day. This acquisition increases Ensign's current ownership to 100% in the leases and wells it acquired from Pioneer Natural Resources USA, Inc. ("Pioneer") in 2019 and Newpek LLC ("Newpek") in 2020. Post the Reliance acquisition, Ensign owns and operates 130,000 acres in the core of the Eagle Ford with current production approaching 40,000 barrels of oil equivalent per day, making the Company one of the premier private operators in the basin.
"Through our efforts over the last three years, we have created an asset that generates significant free cash flow and has a deep inventory of highly economic well locations in the core of the Eagle Ford Shale. We are excited to complete the puzzle with the acquisition of Reliance's interest and now operate one of the premier assets in the basin," said Brett Pennington, President and Chief Executive Officer of Ensign. "We look forward to future development of the asset and working closely with our service providers and landowners as we continue to grow the business in a safe and efficient manner."
Ensign was formed in late 2017 in partnership with Warburg Pincus, a global growth investor. As part of the Pioneer acquisition, the Company also secured an equity commitment from the Kayne Private Energy Income Funds, an investment platform dedicated to partnering with high caliber management teams to acquire and develop large producing oil and gas assets in North America.
Citigroup Global Markets Inc. arranged financing for the acquisition, and Sidley Austin LLP acted as legal counsel to Ensign.
About Ensign Natural Resources
The Company is an exploration and production company operating in the Eagle Ford Shale in South Texas. Ensign currently operates approximately 130,000 gross acres and 700+ wells in Bee, DeWitt, Karnes, and Live Oak Counties. The Company is focused on making disciplined investments, continuously improving, and applying modern technology. CEO Brett Pennington is joined by a management team experienced in finding, developing, and exploiting unconventional assets. Ensign is funded through Warburg Pincus and the Kayne Private Energy Income Funds platform. For more information, please visit www.ensignnr.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $67 billion in private equity assets under management. The firm's active portfolio of more than 215 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 20 private equity funds, which have invested more than $97 billion in over 960 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.
About Kayne Anderson
Kayne Anderson Capital Advisors, L.P. ("Kayne"), founded in 1984, is a leading alternative investment management firm focused on energy, infrastructure, real estate, credit and growth equity. Kayne manages approximately $30 billion in assets for institutional investors, family office, high net worth and retail clients and employs over 300 professionals in five offices across the U.S. The Kayne Private Energy Income Fund, L.P. is part of Kayne's successful energy private equity practice that has raised over $10 billion since 1998. The Fund was formed in 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America. For more information please visit www.kaynecapital.com.
SOURCE Ensign Natural Resources LLC