[Context: On May 30, Intrepid Investment Management announced an undisclosed investment in Rio Grande E&P, which operates assets in South Texas. Rio Grande was formed by a company owned by Governor Jeb Bush and Jeb Bush Jr. and Glenn Hart. The company recently acquired a subsidiary of Amplify Energy (OTCQX: AMPY) for $20m. Further details, advisors and related links are below.]
Intrepid Investment Management Makes Investment in Rio Grande E&P
HOUSTON–May 30, 2018–(BUSINESS WIRE)–Intrepid Investment Management, LLC (“Intrepid Investment Management”) today closed an investment in Rio Grande E&P, LLC (“Rio Grande”) for an undisclosed amount.
Rio Grande is a privately held company engaged in the acquisition, exploration and development of natural gas and oil assets in South Texas. Rio Grande was founded in June 2017 by Glenn Hart (the former Chief Executive Officer of Michael Petroleum Corporation and Laredo Energy) and GS Gas LLC (whose principals include Governor Jeb Bush and Jeb Bush, Jr.)
The Rio Grande management team, which includes industry veterans Jerry Holditch and Brian Butler, specializes in South Texas natural gas production, particularly in Webb County, and the area surrounding Laredo, Texas. The management team has collectively drilled more than 500 wells, acquired interests in over 1,000 wells, and held oil and gas leases of over 500,000 acres in the area of specialization.
In conjunction with Intrepid Investment Management’s investment in Rio Grande, Rio Grande completed its acquisition of Columbus Energy, LLC (“Columbus”) for approximately $20 million (the “Transaction”), prior to closing adjustments.
Columbus is a subsidiary of Amplify Energy Corporation (OTCQX: AMPY, “Amplify Energy”) that owns Amplify Energy’s South Texas oil and gas properties. The South Texas properties consist of approximately 68 Bcfe of proved developed producing reserves with current production of approximately 16 MMcfe/d and over 70,000 net acres in Duval, Jim Hogg, Live Oak, McMullen, Webb and Zapata counties.
Intrepid Investment Management has invested the majority of the equity funding to capitalize Rio Grande and support the Transaction. In addition to Intrepid Investment Management, Rio Grande is capitalized with equity from the management team and other third-party investors.
“We are very pleased to acquire these South Texas properties from Amplify Energy,” said Glenn Hart, Chief Executive Officer of Rio Grande. “My team and I have spent the majority of our careers developing oil and gas assets in this area of South Texas and have extensive technical expertise in the area. We are excited to begin another successful venture starting with this Transaction.”
The Rio Grande management team is well known to Intrepid Investment Management and Robert Cabes, Managing Director and Head of Intrepid Investment Management, whose relationship with Glenn Hart dates back over 15 years.
“I am very excited to be partnering with Rio Grande. Glenn and his team at Rio Grande have operated in this region for several decades and maintain deep relationships in South Texas. They are well positioned to drive value in the acquired assets and further expand the company’s asset base in this region,” said Robert Cabes.
“Rio Grande is an example of the types of opportunities we seek. Glenn and his team have a proven track record of operating in the region and have plans to optimize these producing assets in South Texas. We believe the natural gas market in Mexico continues to evolve rapidly and there are opportunities to grow Rio Grande in the current market,” said Skip McGee, Co-Founder and Chief Executive Officer of Intrepid Financial Partners, LLC (“Intrepid Financial Partners”), the parent company of Intrepid Investment Management.
Locke Lord served as legal advisor to Intrepid Investment Management. Allen & Associates served as legal advisor to Rio Grande.
About Rio Grande
Rio Grande is a privately held company engaged in the acquisition, exploration and development of natural gas and oil assets in South Texas. Rio Grande was founded in June 2017 by Glenn Hart, the former Chief Executive Officer of Michael Petroleum and Laredo, and GS Gas LLC, whose principals include Governor Jeb Bush and Jeb Bush Jr.
Rio Grande is headquartered in Houston.
About Intrepid Investment Management
Intrepid Investment Management is the investing platform of Intrepid Financial Partners. Intrepid Financial Partners is a merchant bank with advisory and investing platforms. It works with companies and investors in the energy sector to provide merger & acquisition and restructuring advice and makes principal equity and debt investments. The firm leverages the deep industry knowledge, relationships and capital-raising expertise of its principals on behalf of its clients and investors. Intrepid Financial Partners invests its own capital alongside its clients.
Intrepid Financial Partners has offices in Houston and New York.