DoublePoint Energy LLC recently had its borrowing base upsized, providing the private oil and gas company with “significant capital” to continue to pursue high-quality opportunities in the Permian Basin.
According to an April 6 release from the Fort Worth, Texas-based company, DoublePoint’s syndicated reserve-based lending (RBL) facility has been increased by 45%. The company also has more than $750 million of undrawn existing equity commitments.
DoublePoint Energy formed in June 2018 through the combination of Double Eagle Energy Holdings III LLC and FourPoint Energy LLC’s Permian subsidiary. Under the leadership of co-CEOs Cody Campbell and John Sellers, DoublePoint currently holds more than 95,000 net acres in the core of the Midland Basin.
In a statement, Sellers noted how the additional RBL capacity paired with the company’s undrawn equity commitment will allow DoublePoint “to play offense” in the down market.
“We are well-positioned to continue with a robust development program and are actively evaluating opportunities to acquire accretive assets,” he said before adding: “We are open for business.”
RELATED:
Double Eagle Energy: Natural-Born Deal Makers (Oil and Gas Investor February 2019 edition)
The existing equity commitments come from funds managed by affiliates of Apollo Global Management, Inc., Quantum Energy Partners, Magnetar Capital, funds managed by GSO Capital Partners LP, Double Eagle Energy Holdings, FourPoint Energy and other investors.
The increase in DoublePoint’s syndicated RBL facility was unanimously approved by the existing bank group. A new bank joined the syndication as well. Citigroup Global Markets Inc. was lead arranger.
Recommended Reading
Waha NatGas Prices Go Negative
2024-03-14 - An Enterprise Partners executive said conditions make for a strong LNG export market at an industry lunch on March 14.
Summit Midstream Launches Double E Pipeline Open Season
2024-04-02 - The Double E pipeline is set to deliver gas to the Waha Hub before the Matterhorn Express pipeline provides sorely needed takeaway capacity, an analyst said.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.
Targa Expects Another Major Permian Pipeline Project This Year
2024-05-03 - Targa Resources says different projects are falling in place for gas capacity expansion
Enbridge Announces $500MM Investment in Gulf Coast Facilities
2024-03-06 - Enbridge’s 2024 budget will go primarily towards crude export and storage, advancing plans that see continued growth in power generated by natural gas.