Global private equity firms KKR & Co. LP and Riverstone Holdings LLC will form one of the largest oil and gas companies in the Barnett Shale with the merger of the existing assets held by KKR Natural Resources Funds with the assets of Legend Production Holdings LLC. The new oil and gas company, called Trinity River Energy LLC, will be headquartered in Fort Worth and led by Chris Hammack, the current president and chief executive officer of Legend. Financial terms of the transaction were not disclosed.
Trinity will be jointly owned by KNR and Riverstone. The firm’s operations executive team will be based in Fort Worth while its finance, accounting and information technology executive team will be based in Houston. The transaction brings approximately 258 mmcfe/d of gross production in the basin. In addition to a large natural gas inventory in the Barnett, Trinity also will have liquid-rich properties in the Permian Basin, East Texas, South Texas, Louisiana and Mississippi. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the third quarter of 2014. KKR’s investment in Trinity is being made by KNR. Future KNR acquisitions made with Fleur de Lis Energy LLC will not be acquired by or otherwise form part of Trinity.
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