BlackGold will receive a percentage of revenue from oil and gas production in this growing basin, free of operating expenses and capital expenditures
BlackGold Capital Management LP (“BlackGold”), a private investment firm focused on the energy industry, today announced the acquisition of a diverse portfolio of mineral and royalty interests in the Midland Basin in West Texas. Financial terms of the transaction were not disclosed.
BlackGold will receive a percentage of revenue from oil and gas production in this growing basin, free of operating expenses and capital expenditures. 72% of the net royalty acres (NRAs) in the portfolio are leased by operators in the top quartile of active horizontal rig counts in the Midland Basin, and 99% of the NRAs are leased by operators in the top half.
“This acquisition exemplifies BlackGold’s strategy of investing in asset-heavy, cash-flowing assets,” said Adam Flikerski, co-founder of BlackGold.
Erik Dybesland, co-founder of BlackGold, added, “BlackGold continues to acquire mineral and royalty interests in the core of low-cost basins under best-in-class operators.”
BlackGold Capital Management, founded in 2006, has invested over $8 billion since inception, across upstream, midstream, and oilfield services companies. In the past 12 months, BlackGold completed acquisitions of mineral and royalty interests totaling approximately $150 million.
Source: Company Press Release