Funds managed by affiliates of Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) and Post Oak Energy Capital, LP (“Post Oak”) announced today that Double Eagle Lone Star LLC (“Double Eagle”), and Veritas Energy Partners Holdings LLC (“Veritas Energy”) have entered into a definitive merger agreement, creating one of the largest pure play exploration and production companies focused on the Permian’s Midland Basin. Double Eagle was previously a subsidiary of Double Eagle Energy Holdings II LLC (“Double Eagle II”), a portfolio company of Apollo Natural Resources Partners Funds I and II, and Veritas Energy was previously a portfolio company of investment partnerships managed by Post Oak.
The newly combined company, which is called Double Eagle Energy Permian LLC (“Double Eagle Energy Permian”), has more than 63,000 core Midland Basin net acres (over 70% operated) located predominantly in Midland, Martin, Howard and Glasscock counties, and a team with extensive experience drilling and operating wells in the region.
Double Eagle Energy Permian will be headquartered in Fort Worth, Texas, and Cody Campbell and John Sellers, the current Co-Chief Executive Officers of Double Eagle II, will serve as the Co-Chief Executive Officers of the new company with Hollis Sullivan, the current President of Veritas Energy, serving as Chairman.
John Sellers and Cody Campbell commented, “We believe combining the highly complementary Midland Basin acreage positions of Double Eagle and Veritas Energy creates a truly world class asset in the core of the most economic basin in North America.”
Hollis Sullivan added, “With the strength of the new company’s combined management team and its operated, drill-ready acreage position, Double Eagle Energy Permian is uniquely positioned for rapid growth and expansion in the region.”
Vinson & Elkins LLP acted as legal advisor and Jefferies LLC acted as financial advisor to Double Eagle, and Latham & Watkins LLP acted as legal advisor and Tudor, Pickering, Holt & Co. acted as financial advisor to Veritas Energy.