Kayne Anderson and 89 Energy III announce formation of Land Run Minerals V, LLC

OKLAHOMA CITY--(BUSINESS WIRE)--Kayne Energy Private Equity (“Kayne Energy PE”) and 89 Energy III, LLC (“89 Energy”) are pleased to announce the formation of Land Run Minerals V, LLC (“LRM V”), a royalties acquisition and management strategy launched from the 89 Energy platform.

In conjunction with the formation of LRM V, Kayne Energy PE and 89 Energy are excited to announce LRM V’s initial acquisition of a unique, large-scale, mature royalties asset located in the core fairway of the Mid-Continent’s STACK play.

Asset Highlights:

• 4,500 Boe/d of net production
• 55,000 net royalty acres (normalized to 1/8^th), primarily operated by Coterra Energy (CTRA), Devon Energy (DVN), Marathon Oil (MRO) and Ovintiv (OVV)
• 1,715 wells with an average net revenue interest of 1.6%
• 5 active rigs on the asset
• Assets mostly located in Kingfisher, Canadian and Blaine Counties, Oklahoma

“This initial acquisition leveraged our extensive experience and understanding of production and development activity in the Mid-Continent,” said John-Mark Beaver, Board Member of LRM V and President and CEO of 89 Energy. “In addition to the material production base, we acquired royalties in low breakeven development locations operated by large, public companies who are committed to active, long-term STACK development programs. Mid-Continent A&D markets are heavily discounting these factors, which is a dislocation we intend to exploit, as available. We are pleased to be of shared vision with Kayne Energy and appreciate their continued support.”

Ryan Sauer, Managing Director at Kayne Energy PE, said, “We are excited to add this mineral and royalty package to the Kayne Energy PE portfolio. This transaction represents a continuation of our successful relationship with the 89 Energy team and reflects our confidence in the team’s ability to identify and create value for our investors. This acquisition will serve as a cornerstone for future deals given the considerable amount of cash flow generated from the properties and inventory of high-quality development prospects.”

FINANCING AND ADVISORS

Equity financing was provided by new commitments from Kayne Energy Private Equity. Debt financing was provided by a new credit facility led by Wells Fargo Securities LLC and TCBI Securities, Inc., who acted as Joint Lead Arrangers and Bookrunners on syndication efforts. Wells Fargo Bank, N.A. will serve as Administrative Agent.

Baker Botts LLP and Porter Hedges LLP served as legal advisors to LRM V. McDermott Will & Emery served as legal advisor to Kayne Energy.

ABOUT LAND RUN MINERALS V, LLC

Land Run Minerals V, LLC is an Oklahoma City-based, private energy company focused on the acquisition and management of mature royalty assets. Land Run Minerals V was launched by the 89 Energy III team, who has a proven track record of operational success and sub-surface expertise as well as a successful history of leveraging its upstream expertise to build and manage mineral and royalty strategies.

For more information, please visit www.landrunminerals.llc and www.eightynine.energy.

ABOUT KAYNE ENERGY PRIVATE EQUITY

Kayne Energy Private Equity is the energy private equity platform of Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”). Kayne Anderson, founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth capital. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne Anderson’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne Anderson manages $34 billion in assets (as of 9/30/2022) for institutional investors, family offices, high net worth and retail clients and employs over 325 professionals in five core offices across the U.S.

For more information, please visit www.kaynecapital.com.