EnCap Investments Closes on $3.5 Billion Minerals Continuation Vehicle

• EnCap closed the EnCap Minerals Continuation Vehicle with approximately $3.5 billion of capital commitments, with investor demand exceeding the target capital raise
• This is the largest capital raise to date for a Continuation Vehicle in the upstream energy sector
• The transaction allows EnCap and its partners to continue participating in the growth and cash flow of long-duration, core Permian Basin mineral assets, while giving existing investors an attractive liquidity option

HOUSTON--(BUSINESS WIRE)--EnCap Investments L.P. (“EnCap” or the “Firm”) today announced the successful close of a continuation vehicle (the “Continuation Vehicle”) for EnCap Minerals, LLC (“EnCap Minerals”) and Rock River Minerals, LP (“Rock River I” and, together with EnCap Minerals, the “Company”), with aggregate capital commitments of approximately $3.5 billion. Managed by EnCap, the Continuation Vehicle is anchored by funds affiliated with Melange Capital Partners (“Melange”). The Company’s portfolio was built through partnerships with Fortis Minerals, OGX Resources, Piedra Energy III, and Pegasus Resources, which continues to manage the assets today.

Investor demand was significant and well in excess of required commitments, with strong support from existing investors as well as new, high-quality institutional investors. EnCap believes the portfolio represents a best-in-class private Permian minerals asset, offering exposure to leading development inventory and operator economics in the Lower 48 and a durable, long-term cash flow profile that requires no future capital expenditures.

Managing Partner Doug Swanson said, “We are grateful to our limited partners for their continued support and for the opportunity to keep owning this exceptional asset well into the future. We have long held strong conviction in the Permian Basin, and we believe it will remain a critical economic engine for many years to come, particularly as industry innovation continues.”

“We also want to thank the Pegasus team and the other management teams who built this portfolio alongside EnCap and created tremendous value along the way. EnCap was an early mover in acquiring upstream minerals at scale, and we continue to execute that strategy today through our flagship institutional funds. We look forward to making this Continuation Vehicle a success for all investors.”

The Company owns approximately 134,000 net royalty acres of mineral and royalty interests in the core of the Permian Basin and generates net production of approximately 37,000 barrels of oil equivalent per day. The position is operated by some of the Permian’s premier operators, including ExxonMobil, Diamondback, Occidental, and ConocoPhillips, which together account for approximately 48% of activity across the acreage and underscore the top-tier quality of the asset base.

Evercore Group L.L.C. acted as exclusive financial advisor to EnCap on the Continuation Vehicle, and Kirkland & Ellis LLP served as legal counsel to EnCap on the transaction. Latham & Watkins served as legal counsel to Melange on the transaction.

About EnCap Investments L.P.

Since 1988, EnCap Investments has been a leading provider of growth capital to the independent sector of the U.S. energy industry. The firm has raised 25 institutional investment funds totaling over $47 billion and currently manages capital on behalf of more than 350 U.S. and international investors. For more information, please visit www.encapinvestments.com.