PE Funding Filling Void in North America E&P as Public Operators Stay Disciplined

Private equity (PE) continues to pour into the North American oil and natural gas patch amid higher commodity prices and capital discipline by publicly traded companies.

Privately held exploration and production (E&P) firm Sabalo Energy II said Wednesday it has closed a $300 million equity commitment from EnCap Investments LP. The objective “is to build, operate and generate significant cash flow from a portfolio of upstream assets located in premier U.S. basins,” Sabalo said. 

Sabalo’s management team and EnCap have joined forces this year already. Sabalo management acquired more than 21,000 net acres in the Permian Basin’s Midland formation and grew production to 14,500 boe/d before selling the assets to Laredo Petroleum Inc. in a $715 cash and stock...