HOUSTON--(BUSINESS WIRE)--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.
BlackGold Capital Management LP is a Houston-based private investment firm focused on asset-heavy, cash-flowing investments in the energy industry. Founded in 2006 by Erik Dybesland and Adam Flikerski, BlackGold seeks to generate compelling returns for its investors by employing a deep fundamental research-driven approach in analyzing energy assets and capital structures. The firm’s team has decades of experience in finance and operations, expertise in energy, and extensive long-standing industry relationships. KKR & Co. Inc., a global investment firm that manages investments across multiple asset classes, holds a 24.9% passive minority interest in BlackGold. For more information, please visit www.BlackGoldCap.com.