Elk Range Royalties Announces Acquisition in the Permian Basin and Launch of Elk Range Royalties II
February 01, 2023 04:55 PM Eastern Standard Time
DALLAS–(BUSINESS WIRE)–Elk Range Royalties, LP (“Elk Range”) is pleased to announce it has closed an acquisition of Permian Basin mineral and royalty interests pursuant to a purchase and sale agreement (“PSA”) with Tower Rock Oil & Gas and its affiliates.
The PSA covers ~2,300 core net royalty acres (“NRAs”), over 2,600 gross producing horizontal wells and more than 6,000 remaining gross undeveloped locations distributed across the Delaware and Midland Basins. LTM cash flow on the acquired assets was ~$3.7mm and includes top operator exposure to Pioneer, Endeavor and Permian Resources. Elk Range funded the acquisition through a combination of its equity commitment from NGP Royalty Partners, L.P. and its credit facility with Texas Capital Bank.
Charlie Shufeldt, CEO of Elk Range, commented, “We are excited to acquire a core Permian Basin mineral and royalty package in a competitive market environment. This acquisition allows us to close out the Elk Range Royalties, LP commitment with an attractive acquisition that has a mix existing cash flow and future development.”
“We enjoyed working with the Elk Range team; they are consummate professionals. Our excitement about this divestiture is multi-faceted as we worked hard to put together a portfolio of first-rate assets. This partial exit provides generous distributions to our fund investors and fresh capital to deploy into high quality mineral investments in our new 4th fund,” commented Oscar Torres, CEO and co-founder of Tower Rock, in a statement.
With the closing of this transaction with Tower Rock, Elk Range has fully invested the capital committed to Elk Range Royalties, LP. The team has secured a new commitment from NGP Royalty Partners II, L.P. to Elk Range Royalties II, LP and will begin investing out of that partnership immediately.
Stubbeman, McRae, Sealy, Laughlin & Browder, Inc. served as legal counsel for Elk Range on the transaction. Rachel Reese and Associates served as legal counsel for Tower Rock on the transaction.
About Elk Range Royalties
Elk Range is led by Charlie Shufeldt (CEO), Clinton Koerth (Vice President of Land and Business Development), Jeff Stewart (Vice President of Engineering) and Ashleigh Bell (Director of Finance & Accounting). Elk Range manages a portfolio consisting of more than 39,000 NRAs with an interest in over 8,000 horizontal wells across the Permian, Uinta, Anadarko, Eagle Ford, Haynesville and DJ Basins under the Elk Range Royalties, Luxe Minerals, 89 Energy II Minerals and Land Run Minerals platforms.
For more information visit www.elkrange.com.
About Tower Rock
Tower Rock is a private oil and gas mineral and royalty acquisition company headquartered in Austin, Texas. Now in its 10th year, Tower Rock is in the early stages of raising and investing its 4th fund.
For more information visit www.towerrockoilandgas.com.
NGP is a premier private equity firm that believes energy is essential to progress. Founded in 1988, NGP is moving energy forward by investing in innovation and empowering energy entrepreneurs in natural resources and energy transition. With $20 billion of cumulative equity commitments, we back portfolio companies focused on responsibly solving and securing the energy needs of today and leading the way to a cleaner, more reliable, more affordable energy future.
For more information, visit www.ngpenergy.com.