Kohlberg Kravis Roberts has formed a partnership with RPM Energy, a privately-owned oil and gas exploration and development company led by energy professionals Claire Scobee Farley and David Rockecharlie.
The partnership, RPM Energy Partners, will target opportunities to be a joint venture partner with E&P companies that are well positioned in the large unconventional resource plays throughout North America.
Financial details and terms of the transaction were not disclosed.
“KKR is excited to partner with Claire and David. Both have a deep knowledge of the energy sector – from operations to business development – and we are thrilled to partner on investments that will develop much needed oil and natural gas reserves across North America,” says Marc Lipschultz, member of KKR and global head of KKR’s energy and infrastructure business.
“We estimate that the “Big Six” shales alone could require in excess of USD1.0trn of total capital throughout their lifecycles in order to maintain lease positions, construct infrastructure and develop the underlying hydrocarbons,” says Rockecharlie.
The partnership will invest in or acquire positions in unconventional oil and gas properties in a wide range of basins.
The formation of the partnership is an extension of KKR’s oil and gas strategy. KKR has been investing in the energy sector and the oil and gas sector, in particular, for more than 20 years, dating back KKR’s investment in Union Texas Petroleum in 1985.
KKR’s recent oil and gas transactions include East Resources, Hilcorp Resources and KKR’s conventional oil and gas platform, formed with Premier Natural Resources.