EnCap Investments LP committed $300 million in equity to a new Permian Basin-focused mineral and royalty company, Pegasus Resources LLC.
Pegasus also partnered with Tilden Capital LLC, an oil and gas investment company that, like Pegasus, is based in Fort Worth, Texas, in an effort to boost opportunities to acquire mineral and royalty properties.
"Our plan is to leverage our extensive network of energy industry relationships, coupled with EnCap's financial strength and expertise, to assemble an attractive portfolio of high-return properties during an advantageous point in the price cycle," said George Young Jr., CEO of Pegasus.
Kelly Hart & Hallman LLP's Fort Worth office served as Pegasus' legal adviser, while Thompson & Knight LLP served as EnCap's counsel. EnCap has raised 20 institutional oil and gas investment funds amounting to about $34 billion.