Silver Hill will have the right to invest an undisclosed amount of equity in PRLLC to acquire assets in Oklahoma, Texas and New Mexico


Image: Perpetual Production and Silver Hill Energy form joint venture. Photo: Courtesy of Adam Radosavljevic from Pixabay.

Perpetual Production has announced a strategic partnership with Silver Hill Energy targeting the acquisition of mineral, royalty and non-operated participation interests in targeted areas of the Mid-Continent and Permian Basin. To facilitate this partnership, Perpetual and Silver Hill have formed a new joint venture investment vehicle named “Perpetual Resources, LLC” (“PRLLC” or the “Company”). Josh R. Camp will continue to serve as President and Chief Executive Officer of Perpetual, managing day-to-day operations and the overall strategy of the Company. Kyle D. Miller, Founder and Managing Partner of Silver Hill, will serve as Non-Executive Chairman of PRLLC, guiding the Company’s strategic direction with Mr. Camp.

“Our team is extremely excited and humbled to work with Kyle and the talented team he has assembled at Silver Hill including Scott Smetko and Patrick Halpin. While Kyle’s track record in the energy industry speaks for itself, the leadership and business acumen he has developed by prudently investing throughout numerous commodity cycles is what differentiates him from others in the industry. Speaking on behalf of the entire Perpetual team, it is our pleasure to welcome Kyle to Perpetual Resources, and we look forward to learning from his valuable insights and industry expertise,” said Mr. Camp.

“Silver Hill is thrilled to have the opportunity to partner with Josh and the rest of the Perpetual team. While the broader oil and gas space has been challenged from an investment perspective for the past several years, we continue to believe there are ways to navigate through the current environment to successfully invest in attractive risk-adjusted opportunities through the use of differentiated information and strategies. The Perpetual team has deep experience in the minerals space, and we are excited to help them take their business to the next level as we pair our Permian Basin expertise with their knowledge and experience in the Anadarko Basin,” said Mr. Miller.

Under the terms of the partnership, Silver Hill will have the right to invest an undisclosed amount of equity in PRLLC to acquire assets in Oklahoma, Texas and New Mexico. The Company’s differentiated strategy is underscored by proprietary data and software which enable it to proactively high-grade on-the-ground acquisitions, ensuring that the Company achieves significant cash flow growth during the next 2-3 years and beyond. Using a network of established relationships in Oklahoma and West Texas, coupled with its unique data edge, PRLLC is well-positioned to be a consolidator of mineral, royalty and non-operated interests.

Regarding the newly-formed Company’s strategy, Mr. Camp stated, “Over the last 24 months, Perpetual has built a compelling mineral position in the core of STACK through our first private equity-backed venture, Perpetual Production – MidCon, LLC. The level of competition in basin, combined with our cost of capital, forced us to strictly adhere to our investment thesis of purchasing mineral and royalty assets with an unquestionable line of sight to development. This required focusing on areas with well-defined geologic and economic parameters under premier, well-capitalized operators. Perhaps most importantly, we were able to develop several proprietary, data-driven strategies that allowed us to successfully build a sizeable asset position. We will apply these same principles to Perpetual Resources and continue to capitalize on market inefficiencies.”

In addition to being seeded with new equity from Silver Hill and Perpetual, PRLLC is in active dialogue with additional equity providers to further scale the new business. The Company expects to finalize its capital structure during the coming months.

Source: Company Press Release