Riverstone and Carlyle Lead $500M Commitment to Dynamic Offshore
Energy private equity firm Riverstone Holdings and global private equity firm The Carlyle Group have committed $450 million for investment in Dynamic Offshore Resources, LLC, a new Houston-based oil and gas company that will focus on acquiring and developing producing properties in the Gulf of Mexico. The founders and management team at Dynamic Offshore Resources have committed to fund up to an additional $50 million.
Dynamic Offshore Resources will use the committed capital to concentrate entirely on the unique challenges and opportunities associated with Gulf of Mexico assets, which are often viewed as out-of-favor or neglected, but still have viable and attractive growth and profit opportunities."With the major oil companies, large independents and other public companies exiting the Gulf of Mexico shelf, market conditions are very favorable for a well-funded and experienced management team like the one we are building at Dynamic Offshore Resources," said Matt McCarroll, chief executive and co-founder of the company. "Riverstone Holdings is one of the most respected private equity firms in the energy industry, and we are excited to have them as our partners in this endeavor."
McCarroll previously served as the president of Maritech Resources, Inc., an exploitation and production company focused on the Gulf of Mexico, and a subsidiary of Tetra Technologies Inc. McCarroll built Maritech into a respected and successful operator of mature assets in the Gulf of Mexico. Prior to his tenure at Maritech, McCarroll founded and sold Augusta Petroleum Partners, which also focused on the Gulf Coast region.
"Matt is a proven operator in the Gulf of Mexico region," said N. John Lancaster, a managing director at Riverstone Holdings. "We believe Matt's demonstrated leadership and operating capabilities and a significant commitment of private capital represent a compelling combination for generating attractive cash-on-cash returns in a region that has been de-emphasized by many public operators."
McCarroll is joined at Dynamic Offshore Resources by co-founder Mike Moreno – who also serves as founder, chairman and chief executive of Lafayette, La.-based oilfield services company Moreno Group, LLC. The Moreno Group is the parent company of Dynamic Industries, Arc Equipment Rental, Dii, Southern Steel and Supply and Dynamic Maritime Services. The Moreno Group itself received a significant equity investment from Riverstone Holdings and The Carlyle Group in 2007.
The current management team at Dynamic Offshore Resources also includes John Y. Jo, who serves as the company's senior vice president. Jo was previously the president and chief operating officer at Turnkey E&P Corporation.