KKR, Venado Oil acquire Cabot Oil assets


Venado Oil and Gas, LLC alongside KKR have closed on the acquisition of the operated and non-operated Eagle Ford assets of Cabot Oil & Gas Corporation.

KKR said in a statement that the deal was closed for a purchase price of $765 million, subject to customary closing adjustments. Venado and KKR acquired interests which include approximately 303 gross/203 net wells and 74,400 net acres situated primarily in the Eagle Ford oil window of South Texas (Atascosa, Frio, and LaSalle counties). During the fourth quarter of 2017, the assets produced 15,656 net barrels of oil equivalent per day (85% oil, 5% natural gas and 10% NGLs).

Venado CEO Scott Garrick stated, “The Cabot acquisition is a high-quality asset positioned in the oil fairway of the Eagle Ford. The combination of a strong production base and an attractive inventory of future drilling locations fit well with our disciplined business model of operating with free cash flow while supporting long term growth. We look forward to implementing our leading edge drilling and completion designs in one of the best producing basins in the country.”

David Rockecharlie, Member and Head of Energy Real Assets for KKR, commented, “We are excited to continue to build a first-in-class Eagle Ford asset position alongside Scott and his team. We continue to see an attractive market opportunity throughout the Eagle Ford trend and believe we are well positioned for future growth and long-term value creation through strong operational execution.”

As of the closing date, the Venado and KKR partnership will hold interests in 112,000 net acres, producing over 43,000 barrels of oil equivalent per day from the Eagle Ford trend of South Texas. Garrick added, “I am very pleased about what the Venado and KKR partnership has been able to accomplish in a short period of time. We will continue to execute on our Eagle Ford pure-play strategy to consolidate premier liquids-rich assets.”

The Venado partnership is principally funded by KKR’s Energy Income and Growth Fund I (“EIGF”). EIGF manages a portfolio of oil and gas assets in numerous unconventional and conventional resource areas across the United States. KKR has made more than ten investments in the Eagle Ford to date.

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