Affiliates of New York-based Apollo Global Management LLC (NYSE: APO) and Double Eagle Development L.L.C. of Fort Worth on Wednesday announced they have expanded their strategic relationship to create Double Eagle Energy Holdings III LLC . Headquartered in Fort Worth, Double Eagle III will primarily focus on investing in oil and gas properties in the Permian Basin. Double Eagle III was formed by the same management team that recently led its predecessor companies, with John Sellers and Cody Campbell continuing to serve as co-chief executive officers. Sellers and Campbell also manage Double Eagle, which has been one of the largest independent acquirers of oil and gas leasehold interests across Texas and the Mid-Continent.
Formation of this new company follows the recent sale of Double Eagle Energy Permian LLC to Parsley Energy Inc. (NYSE: PE) for approximately $2.8 billion. Double Eagle II developed a significant acreage position in the heart of the Midland Basin, including approximately 72,000 net acres, production of 3,600 barrels of crude oil equivalent per day and approximately 3,300 net horizontal drilling locations.
According to the news release, Double Eagle III will pursue a similar strategy to Double Eagle II, but on a significantly larger scale and with a more substantial upfront commitment from funds managed by Apollo, along with the management team.
“We are excited to have the opportunity to work once again with Apollo. The continued strong relationships with their team, paired with their funds’ financial strength and track record of success allow us to aggressively pursue larger and more numerous opportunities in the most prolific basin in North America,” said Campbell. “With the integration of our world-class operating team and the collective resources of the Apollo team, Double Eagle III will look to continue the strategic and successful acquisition and development of high quality oil and gas assets in the Permian Basin.”