Alpine’s first investment is the recently closed $500 million DrillCo financing with California Resources
Image: Equity Group Investments and Colony Capital form Alpine Energy Capital to invest in upstream oil and gas industry. Photo: courtesy of skeeze from Pixabay.
Equity Group Investments (“EGI”), Sam Zell’s private investment firm, and Colony Capital, Inc. (NYSE: CLNY or “Colony”), today announced a new joint venture partnership, Alpine Energy Capital, LLC (“Alpine”, formerly known as Colony HB2 Energy, LLC), to provide capital and asset management solutions to the U.S. upstream oil & gas industry. Alpine will enable institutional investors to participate directly at the asset level without the overhead and reinvestment risks associated with the traditional industry structure. Specific terms of the transaction are not being disclosed.
Sam Zell, Chairman of EGI, commented, “The energy sector is being impacted by a shortage of capital, which is a direct result of the sector’s previous performance and investors’ inability to earn a return. We have long history in investing in dislocated situations, of which this is an example.”
Tom Barrack, Chairman and Chief Executive Officer of Colony Capital, said, “We could not be more excited to partner with a world-class investor like Sam Zell and Equity Group Investments. The industry conditions that helped create the opportunity we set out to capitalize on a year ago have persisted and only become more entrenched. We look forward to what we can accomplish together on behalf of our investors.”
Formed in 2018, Colony HB2 Energy will now rebrand as Alpine, and continue to focus on sourcing, sponsoring and managing investment product solutions that provide more efficient forms of exposure to the asset class.
Alpine’s first investment is the recently closed $500 million DrillCo financing with California Resources Corporation (NYSE: CRC), the largest oil & gas exploration and production company in California. Alpine has committed $320 million in the first tranche of this joint venture that will be used to develop approximately 275 wells at CRC’s flagship Elk Hills field.
Alpine is headquartered in Houston, Texas, and led by its seasoned management team including Chairman Craig Perry and Chief Investment Officer Bill Wicker, along with Chief Operating Officer Michael McCoy, Chief Exploration Officer Elliott Hough and Michael Bertuccio, who each have more than 30 years of experience in the oil & gas industry.
“We are aggressively pursuing opportunities in the upstream oil & gas industry and look forward to speaking with operators in need of capital solutions,” added Perry.
Source: Company Press Release