Texas Firms in Strategic Joint Venture

Texas Firms in Strategic Joint Venture
Houston-based energy investment management firm Pickering Energy Partners has announced a 'strategic joint venture' with Henry Resources.

Houston-based energy investment management firm Pickering Energy Partners (PEP) has announced a “strategic joint venture” with Henry Resources.

The joint venture will pursue acquisitions of producing oil and gas assets across the Permian basin, according to PEP, which revealed that, under the terms of the partnership, the companies will aim to invest at least $500 million in producing asset packages to be operated by the Henry team.

The partnership’s strategy includes a “significant current yield component, with a robust hedging program to protect against volatility in crude oil markets,” PEP noted.

“We see a unique opportunity today in the acquisition market for producing oil and gas assets,” Dan Pickering, PEP chief investment officer, said in a company statement.

“Partnering with Henry Resources and our investors allows us to opportunistically exploit the liquidity-driven mispricing in the market,” he continued.

“The Henry team has been long time friends and partners of ours, and we are honored to be working with a group with a respected reputation, a half century of experience in the Permian, and a distinguished track record of success,” Pickering added.

David Bledsoe, president of Henry Resources, said, “Henry has had a front row seat to the Permian basin through various cycles over the past few decades and today looks like one of the most favorable PDP acquisition markets we have ever seen”.

“Henry believes we are well positioned with the PEP joint venture to exploit the current correction and deliver predictable returns to the Henry family and our partners,” he added.

PEP, which was founded in 2004, invests client assets in energy sector focused public and private investment strategies designed to deliver strong risk-adjusted returns, according to the company’s website.

Henry Resources, which was founded 50 years ago, is a Permian basin oil and gas producer privately held by the Henry family. The company has been located in Midland, Texas, since its founding in 1969.

The Permian basin oil and gas industry will support 93,201 jobs in 2020, according to the latest forecast from the Texas Independent Producers & Royalty Owners Association (TIPRO). This is 5,578 more jobs than the sector supported in the first half of 2019 and 12,209 more jobs than the sector supported last year, TIPRO revealed.

To contact the author, email andreas.exarheas@rigzone.com


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