Investment firms Kohlberg Kravis Roberts & Co. (NYSE: KKR) and Riverstone Holdings LLC are merging oil and gas assets to form Trinity River Energy, a new Fort Worth-based company that will become one of the largest operators in the Barnett Shale.
Trinity River will have Barnett Shale wells capable of producing up to 258 million cubic feet per day of natural gas. The driller will also have oil and natural gas liquid-rich properties throughout Texas, Louisiana and Mississippi.
The company formed from the combination of KKR Natural Resources and Legend Production Holdings, a Riverstone company. Both KKR, which manages investments across various asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds, and Riverstone, an energy and power-focused private investment firm, have offices in Houston.
Although Trinity’s operations executive team will be based in Fort Worth, its finance, accounting and information technology executive team will be based in Houston. Chris Hammack will be the company’s CEO. He was CEO of Legend.
“We are very pleased to be combining these two portfolios of assets,” Hammack said in a statement. “Following the combination, Trinity will have an impressive position in the Barnett Shale and a mix of highly prospective plays. We feel confident that our strong financial backing and experienced teams will allow us to build a highly successful company together.”
The merger is expected to be completed this fall.
Article and Image sourced from bizjournals.com July 10th, 2014