Backed by funds managed by Ares Management Corporation
LOS ANGELES & HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--
Development Capital Resources, LLC (DCR) announced today that a
DCR-managed subsidiary, capitalized by funds managed by affiliates of
Ares Management Corporation (NYSE:ARES), has entered into a drilling and
development joint venture with a private operator in the Permian Basin.
The DCR-managed entity will invest up to $165 million in the joint
venture and will participate as a working interest owner in the drilling
and completion of identified drilling locations in the Permian’s
Wolfcamp formation. The drilling program has commenced, and it is
anticipated to continue through 2020.
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“This transaction represents a continuation of our strategy of
participating in energy sector joint ventures with quality operators in
established basins,” said Ronnie Scott, President of DCR. “As the
structure of energy joint ventures continues to evolve, DCR has worked
to remain flexible in finding ways to assist operators to improve and
develop their assets.”
“We are excited to complete our fourth transaction in this segment of
the energy space. In each case, we have been able to structure a
creative solution tailored to the needs of the operator,” said Matt
Loreman, Executive VP of DCR. “While the energy investment space remains
challenging, it has been enjoyable to work directly with quality
companies to find investment solutions that work for them and for DCR.
We look forward to continuing to grow our portfolio of non-operated
partnerships.”
“This partnership reflects the flexible capital approach of Ares and our
ability to customize transactions to the needs of operators,” said Gary
Levin, Partner in the Ares Private Equity Group. “We look forward to
finding additional ways to utilize the scale and creativity of our
platform to provide attractive capital solutions to the energy industry.”
DCR was formed in early 2017 to provide capital to the North American
exploration and production industry and, in partnership with funds
managed by affiliates of Ares, has been involved in four transactions
representing more than $1.3 billion to acquire and fund participating
interests in joint ventures across projects in Texas, Oklahoma, and
California.
About Development Capital Resources
Development Capital Resources, LLC is an oil & gas company focused on
participating in non-operated joint ventures in the North American
exploration and production industry. DCR has offices in Houston, Texas
and Midland, Texas.
About Ares Management Corporation
Ares Management Corporation is a publicly traded, leading global
alternative asset manager with approximately $137 billion of assets
under management as of March 31, 2019 and 18 offices in the United
States, Europe, Asia and Australia. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190619005206/en/
For DCR & Ares Management Corporation:
Media:
Mendel
Communications
Bill Mendel, 212-397-1030
[email protected]
or
Investors:
Carl
Drake, 800-340-6597
[email protected]
or
Priscila
Roney, 212-808-1185
[email protected]
Source: Ares Management Corporation
