Kohlberg Kravis Roberts & Co. LP (KKR) and Riverstone Holdings LLC have signed a definitive agreement to combine the existing assets held by KKR Natural Resources Funds with the assets of Legend Production Holdings LLC, a Riverstone company, to create a Fort Worth-based oil and gas company named Trinity River Energy LLC.
The transaction forms one of the largest operators in the Barnett shale, with gross production of 258 MMcfd of gas equivalent in the basin. KKR in 2012 agreed to acquire certain Barnett and Arkoma basin assets from WPX Energy for $306 million (OGJ Online, Apr. 2, 2012).
Trinity also will have liquid-rich assets in the Permian basin, East Texas, South Texas, Louisiana, and Mississippi.
Chris Hammack, the current president and chief executive officer of Legend, will assume Trinity’s leadership role. Trinity’s operations executive team will be based in Fort Worth while its finance, accounting, and information technology executive team will be based in Houston.
The transaction is expected to close in the third quarter.