[Context: On January 19, Warburg Pincus announced a $150m equity commitment to upstreamer Stronghold Energy II. The Midland-focused company is focused on the Central Basin Platform in the Permian. Further details and related links are below.]
Stronghold Energy II Announces Equity Commitment of Up to $150 Million from Warburg Pincus
MIDLAND, Texas and NEW YORK, Jan. 19, 2018–/PRNewswire/ — Stronghold Energy II Holdings, LLC (“Stronghold” or “the Company”), a newly formed oil and gas exploration and production company, today announced that it has received a line of equity financing of up to $150 million from funds affiliated with Warburg Pincus, a global private equity firm focused on growth investing.
Formed in December 2017 and headquartered in Midland, Texas, Stronghold Energy II is focused on the Central Basin Platform (“the Platform”) of the Permian Basin and intends to acquire meaningful acreage positions for oil and gas development. The team expects to capitalize on its recent success in the region and apply its highly technical geological approach to exploiting areas across the Platform.
Stronghold is led by Steve Weatherl, an Exxon-trained geologist with extensive Permian experience and more than 35 years in the industry, including serving as Vice President of Exploration at another private equity-backed company where he built a Wolfcamp position that ultimately spanned approximately 50,000 acres in the Southern Midland Basin, and General Manager and Vice President of the Midland Division at EOG Resources, where he ran up to a 10-rig program and invested more than $500 million at attractive rates of return. Mr. Weatherl also served as Vice President of Exploration, USA at Pioneer National Resources and Chief Operating Officer at EnerQuest Oil & Gas.
Mr. Weatherl is joined by a senior team with a strong track record in the Permian including Travis Lain, Chief Operating Officer, who previously served as Operations Manager for the Midland Division at EOG Resources, and Caleb Weatherl, President and Chief Financial Officer, former Chief Financial Officer for Desert Royalty Company.
Mr. Weatherl commented, “We look forward to building this new enterprise focused on the Central Basin Platform, where we see many compelling opportunities. We are very pleased to be partnering with Warburg Pincus, a leading investor in the energy sector, with deep Permian experience and impactful investments helping drive the technological revitalization and growth in the region. We are excited to have Warburg’s support in this new venture and look forward to building a successful enterprise.”
David Habachy, Managing Director, Warburg Pincus, said, “Steve and his team have extensive experience in the Permian, together with strong technical capabilities and drilling and completions expertise. We are excited to partner with such an impressive team and are confident in Stronghold’s ability to create value. We look forward to supporting the company as it pursues its strategy.”
About Stronghold Energy II
Stronghold Energy II is a newly formed oil and gas exploration and production company focused on the Central Basin Platform of the Permian Basin. The company is led by Steve Weatherl and a senior team with extensive experience in the Permian. Stronghold intends to acquire meaningful acreage positions for oil and gas development across the Central Basin Platform.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $44 billion in private equity assets under management. The firm’s active portfolio of more than 150 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 17 private equity funds which have invested more than $60 billion in over 800 companies in more than 40 countries.
For more than two decades, Warburg Pincus has invested or committed over $14 billion across more than 80 energy investments around the world involved in upstream, midstream and downstream oil and gas; energy services and technology; power generation and transmissions; alternative energy and renewables; and mining and metals. Notable current and former oil and gas portfolio companies for which Warburg Pincus was a founding institutional investor include Antero Resources, ATX Energy Partners, Bill Barrett Corporation, Brigham Resources and Minerals, Broad Oak Energy, Chisholm Energy Holdings, Encore Acquisition Company, Kosmos Energy, Laredo Petroleum, Newfield Exploration, Spinnaker Exploration and Targa Resources.
The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information please visit www.warburgpincus.com.