Equity Investment – Mineral Asset Acquisition

Industry

Oil & Gas

Company Type

Investment

Location

US

Size

$350 million

Investment Type

Equity

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Helping Great Companies Grow

Overview

  • United Resource Partners is seeking +/-$350 million to acquire producing oil and gas mineral and royalty assets
  • Acquire properties to buy royalty interests at distressed prices, taking advantage of the depressed energy environment
  • Focus on producing properties for current income
  • Management team is experienced in acquiring, managing, and selling mineral and royalty assets
  • Management expects to pay a portion of its cash flow each quarter to its investors, and believes investors could receive an annual cash on cash return of 6% or more (a detailed financial model with assumptions and ability to run sensitivity analyses will be available upon request)
Helping Great Companies Grow

Opportunity

  • Depressed commodity prices and pressure on upstream exploration/production companies to drill and operate out of cash flow have created a difficult environment for owners and operators
  • Most institutional investors are avoiding this sector entirely
  • Management believes this has created an extremely compelling opportunity to acquire quality oil and gas royalty assets through defined pipelines
  • In a low interest rate environment, oil and gas royalties should provide an excellent opportunity to diversify and generate uncorrelated yield
  • The energy environment may become more strained in the near future, which could create significant opportunities to acquire distressed assets at depressed commodity prices from multiple sources
URP OP
Helping Great Companies Grow

Solution/Strategy

  • URP expects to provide a well-capitalized, reliable solution to interest owners seeking to exit quality oil and gas mineral and royalty assets in the onshore US market
  • Target diversified investments, both between and within targeted plays
  • Focus on capital preservation and yield generation
  • Target value upside at exit
  • Six primary sources:
    • Private equity sponsored mineral companies
    • Smaller private aggregators of minerals
    • Fee simple ownership
    • Saltwater disposal well royalty
    • Water flood mineral interests
    • Overriding royalty interests (ORRIs) from operators, working interest owners and underwriters (banks) of bankrupt oil and gas companies
Helping Great Companies Grow

Management

Ryan Cole

Managing Partner

Formed Latitude Land, LLC in 2018 to acquire mineral and leasehold rights in the onshore US. Prior to Latitude, was VP of Natural Gas at MAP Royalty Inc., which manages over $2 billion in capital commitments. Served on the Portfolio Committee and was involved in approximately $550 million of oil and gas mineral investments. Was in-house counsel for Devon Energy Corporation. Owns and manages LRC Enterprises, LLC and has aggregated and sold several leasehold and non-operated working interest packages in the mid-continent. JD from the University of Oklahoma. Bachelor of Business Administration in Finance with Honors from the University of Oklahoma Price College of Business. Oklahoma Bar Association, Oklahoma Bar Energy and Natural Resources Law Section, and the Oklahoma City Association of Professional Landmen.  Previously on the Advisory Board for Viking Mineral Partners and currently serves as the President of the Board of Trustees for the Harn Homestead Museum in Oklahoma City and on the Board of Directors for Valor Bank.

Mike McKinney

Managing Partner

Over 40 years in the oil and gas industry with expertise in management, exploration programs, geophysical operations, production, drilling, operations, natural gas contracts, and joint ventures. As an Independent Operator has been responsible for all aspects of operations from the origination of drilling prospects to the marketing of the products.  Has drilled wells and evaluated drilling prospects and operations in the Mid-Continent, Gulf Coast, Permian Basin, and Rocky Mountain regions.  Extensive experience in acquiring mineral interests – acquired over $100 million in oil and gas mineral interests. First employed by Amarillo Oil Company, an exploration and production company for a public utility, in their legal department.  Has consulted for various public companies, including facilitating the acquisition $500 million worth of oil and gas properties and has served on the board of directors of oil and gas exploration companies and been an advisor to numerous oil companies. BA from the University of Texas at Austin.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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