New Oil & Gas Company Provides Development Capital to North American
E&P Operators
LOS ANGELES & MIDLAND, Texas--(BUSINESS WIRE)--
Ares Management, L.P. (NYSE:ARES) announced the formation of Development
Capital Resources (DCR), an oil and gas company focused on providing
development capital to North American exploration and production
operators. Led by Ronnie Scott and Matt Loreman and backed by funds
managed by Ares Management, DCR will identify opportunities to partner
with existing operators throughout North America to help them accelerate
growth through the development of their assets.
“The formation of DCR is exciting because it provides an opportunity to
participate alongside some highly-respected operators across a variety
of oil and gas basins in the U.S. by providing them growth capital,”
commented Ronnie Scott, President of DCR. “There is a demand for this
type of capital, and we anticipate significant interest from operators.
We have a substantial amount of capital available to deploy around a
variety of similarly-styled investments including but not limited to
drilling joint ventures, non-operated working interests, and royalty
participation.”
“We are excited to continue our longstanding relationship with the DCR
principals, Ronnie and Matt,” said Nate Walton, Partner in the Ares’
Private Equity Group. “DCR expands Ares’ participation across the
capital spectrum and is a continuation of Ares’ focus on being among the
most flexible capital providers in the energy industry. We are
increasingly finding that a single equity or debt solution does not meet
every operator’s needs, so the establishment of the DCR platform gives
Ares another avenue to provide competitive capital solutions. We are
working with DCR to aggressively identify additional opportunities for
investment and are pleased that DCR has participated in two significant
joint ventures within their first ninety days of operation.”
DCR also announced that it has entered into a $300 million drilling
partnership with Endeavor Energy Resources, a Midland, Texas-based
operator with expertise in the development of Wolfcamp horizontal wells.
DCR will fund the majority of the capital required and will participate
as a non-operator to finance and develop identified locations. Upon
achieving an agreed upon return, DCR’s working interest will decrease
during the operations phase of the drilling joint venture.
In addition, DCR announced a second, similar transaction with a
non-Permian operator in which DCR will fund approximately $150 million
in a drilling joint venture.
“The Endeavor program was of interest because it provided an opportunity
to participate alongside a highly-respected operator in one of the
premier basins in the U.S.,” said Mr. Scott. “Endeavor’s ability to
identify development locations and then quickly begin implementation of
the program was important to us. Rather than begin with a capital
commitment spread across many years and multiple prospects, the parties
involved in the project were interested in drilling known locations at a
reasonable pace. This joint venture is off to a rapid start with two
drilling rigs in operation. In the same way, the second transaction
allowed us to quickly deploy capital as it too is now in progress.”
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative
asset manager with approximately $99 billion of assets under management
as of December 31, 2016, including approximately $3.6 billion of AUM pro
forma for Ares Capital Corporation’s acquisition of American Capital,
Ltd., which closed on January 3, 2017, and more than 15 offices in the
United States, Europe and Asia. Since its inception in 1997, Ares has
adhered to a disciplined investment philosophy that focuses on
delivering strong risk-adjusted investment returns throughout market
cycles. Ares believes each of its three distinct but complementary
investment groups in Credit, Private Equity and Real Estate is a market
leader based on assets under management and investment performance. Ares
was built upon the fundamental principle that each group benefits from
being part of the greater whole. For more information, visit www.aresmgmt.com.
About Development Capital Resources
Development Capital Resources L.P. is an oil & gas company focused on
providing development capital to North-American E&P operators.
Development Capital Resources is headquartered in Houston, Texas.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170403005404/en/
Media:
Mendel Communications
Bill Mendel, 212-397-1030
[email protected]
or
Investors:
Ares
Management, L.P.
Carl Drake, 800-340-6497
[email protected]
Source: Ares Management, L.P.
