[Context: On March 29, KKR-backed BlackGold Capital Management announced the acquisition of a portfolio of Overriding Royalty Interests (ORRI) in the Utica shale of Ohio with the help of co-investors. Further details and related links are below.]
BlackGold Closes Royalty Investment in the Utica Shale; Continues to execute proven strategy providing structured debt and equity solutions to mid-sized energy companies
HOUSTON–March 29, 2019–(BUSINESS WIRE)–BlackGold Capital Management LP (“BlackGold”), a private credit investment firm focused on the energy industry, today announced the acquisition of a portfolio of Overriding Royalty Interests (ORRI) in the Utica shale of Ohio. The acquisition was completed in conjunction with co-investors.
The ORRI will provide investors a portion of the revenue from natural gas production. BlackGold has also partnered with an established management team with a track record of investing in ORRIs.
“The energy sector is in a multi-year transition and the industry remains under stress,” said Adam Flikerski, co-founder of BlackGold. “We believe there is strong demand for us to fill a gap left by banks and provide capital to middle market energy companies, as evidenced by our robust pipeline of funding opportunities.”
Erik Dybesland, co-founder of BlackGold added, “Given the demand for capital in the energy industry and traditional sources curtailed, we believe that our platform provides the skills necessary to source opportunities, provide creative solutions for companies, and deliver solid outcomes for our institutional partners.”
BlackGold Capital Management, founded in 2006, has invested over $7.5 billion in both public and private energy companies, across upstream, midstream, and oil field services.
BlackGold Capital Management LP is a leading investment firm focused on opportunistic catalyst-driven investments in the energy industry. The firm’s team has decades of experience and expertise in energy with extensive long-standing industry relationships. Founded in 2006, BlackGold seeks to generate compelling returns for its investors by employing a deep fundamental research-driven approach in analyzing energy assets and capital structures. The firm manages approximately $1 billion in capital across its investment platform which includes public and private commingled strategies as well as managed accounts. KKR & Co. LP, a global investment firm that manages investments across multiple asset classes, holds a 24.9% passive minority interest in BlackGold Capital Management LP.