SmashCo: Kayne Anderson consolidates Anadarko Basin, adds in STACK for good measure

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[Context: On May 20, Kayne Anderson announced the all-equity consolidation of Anadarko Basin portfolio companies Casillas Petroleum Resources Partners, Native Exploration Holdings, Acacia Exploration Partners to form 89 Energy III. The new entity will also manage the asses of Triumph Energy Partners. Further details and related links are below.]


Kayne Anderson  | Casillas Petroleum Resources | Native Exploration  | Acacia Exploration  | 89 Energy III  | Triumph Energy Partners

Kayne Anderson Energy Funds Announces Consolidation of Anadarko Basin Portfolio Companies Under New Management, Closing of New Credit Facility and Additional Equity Funding

May 20, 2021 08:04 PM Eastern Daylight Time

OKLAHOMA CITY–(BUSINESS WIRE)–Kayne Anderson Energy Funds is pleased to announce the all-equity consolidation of Casillas Petroleum Resource Partners, LLC, Native Exploration Holdings, LLC and Acacia Exploration Partners, LLC to form 89 Energy III, LLC (“89 Energy III”). Concurrent with the consolidation, 89 Energy III closed on a new syndicated credit facility and received additional equity contributions from energy private equity funds managed by Kayne Anderson. Kayne Anderson’s energy private equity platform is also excited to announce a new partnership with the 89 Energy III management team who will serve as new leadership for the business going forward.

89 Energy III successfully closed on a new, three-year credit facility with a majority of the existing lending syndicates of the predecessor companies. At close, 89 Energy III’s credit facility had a $250 million borrowing base with Wells Fargo Bank, N.A. serving as Administrative Agent. Wells Fargo Securities, LLC served as Left Lead Arranger on the syndication of the credit facility.

This consolidation further strengthens the financial and operating position of 89 Energy III allowing it to realize day-one structural cost reductions, leverage scale for additional savings opportunities and to pursue the prudent and efficient development of its high-quality drilling inventory. 89 Energy III’s operating footprint consists of approximately 80,000 net acres across Oklahoma, with approximately 21,000 net boe/d of production. Additionally, 89 Energy III will manage the assets of Triumph Energy Partners, LLC (“Triumph”), which consists of approximately 15,000 net acres in STACK with approximately 6,500 net boe/d of production.

John-Mark Beaver, President and CEO at 89 Energy III, said, “We are pleased to announce the partnership with Kayne Anderson’s energy platform along with this transformative consolidation that provides scale and strong financial footing for a one-of-a-kind, highly economic Mid-Continent asset. 89 Energy III is well positioned to evolve with the changing energy landscape and to thoughtfully develop our assets and pursue strategic, scalable opportunities.”

Ryan Sauer, Managing Director at Kayne Anderson Energy Funds, said, “We are excited about partnering with the talented 89 Energy III management team and will look to create substantial value in our current Mid-Continent asset through both the continued exploitation of the existing inventory and further consolidation within the Anadarko Basin.”

ABOUT 89 ENERGY III

89 Energy III is an Oklahoma City-based, private energy company focused on the acquisition and development of oil and gas assets and has a proven track record of operational success and sub-surface expertise in the Mid-Continent.

ABOUT KAYNE ANDERSON CAPITAL ADVISORS, L.P.

Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth equity. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne Anderson’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne Anderson manages over $34 billion in assets (as of 3/31/2021) for institutional investors, family offices, high net worth and retail clients and employs over 350 professionals in five core offices across the U.S.

Related Links

  • eightynine.energy
  • www.kaynecapital.com