Fort Worth has a new energy company, the result of a merger of two companies owned by larger holding companies.
Funds managed by affiliates of Apollo Global Management LLC (NYSE:APO) and Post Oak Energy Capital LP announced Oct. 3 that Double Eagle Lone Star LLC and Veritas Energy Partners Holdings LLC have entered into a definitive merger agreement, creating one of the largest pure play exploration and production companies focused on the Permian’s Midland Basin. Double Eagle was previously a subsidiary of Double Eagle Energy Holdings II LLC, a portfolio company of Apollo Natural Resources Partners Funds I and II, and Veritas Energy was previously a portfolio company of investment partnerships managed by Post Oak.
The newly combined company, which is called Double Eagle Energy Permian LLC and will be based in Fort Worth, has more than 63,000 core Midland Basin net acres (over 70 percent operated) located predominantly in Midland, Martin, Howard and Glasscock counties, and a team with extensive experience drilling and operating wells in the region.
Cody Campbell and John Sellers, the current co-CEOs of Double Eagle II, will serve as the co-CEOs of the new company with Hollis Sullivan, the current president of Veritas Energy, serving as chairman.
“With the strength of the new company’s combined management team and its operated, drill-ready acreage position,” said Sullivan. “Double Eagle Energy Permian is uniquely positioned for rapid growth and expansion in the region.”
Vinson & Elkins LLP acted as legal adviser and Jefferies LLC acted as financial adviser to Double Eagle, and Latham & Watkins LLP acted as legal adviser and Tudor, Pickering, Holt & Co. acted as financial adviser to Veritas Energy.