Hilcorp, KKR form Eagle Ford partnership
Private Houston independent Hilcorp Energy Co. and Kohlberg Kravis Roberts & Co. agreed to form a partnership to develop Hilcorp’s 100,000-net acre holding in the Eagle Ford shale trend in South Texas.
By OGJ editors
HOUSTON, June 14 -- Private Houston independent Hilcorp Energy Co. and Kohlberg Kravis Roberts & Co. agreed to form a partnership to develop Hilcorp’s 100,000-net acre holding in the Eagle Ford shale trend in South Texas.
Upon closing, Hilcorp will hold 60% and KKR 40% of Hilcorp Resources LLC, which will explore a 200-mile long area southeast of San Antonio. KKR will invest as much as $400 million in the partnership. Hilcorp will also commit capital to the project.
Hilcorp, which operates almost all the acreage, is running two horizontal rigs.
“In addition to the development program,” Hilcorp said, “the company will actively look for opportunities to increase its acreage position in the Eagle Ford through leasing, joint ventures, and acquisitions. Going forward, the company intends to be creative in structuring future transactions as it expands its Eagle Ford position and believes that it can offer a strong value proposition to landowners and operators in the trend.”
Hilcorp Energy was founded in 1988 by current Pres. and Chief Executive Officer Jeff Hildebrand. It is one of the largest private independent oil and natural gas companies in the US with five offices and 600 employees. It has operated in South Texas since 1998 and is the largest producer of conventional oil in the region.