Pegasus Resources secures additional $300 million from EnCap Investments

Fort Worth-based Pegasus Resources LC, a mineral and royalty company, announced Feb. 14 that that it has secured an additional $300 million equity commitment from EnCap Investments L.P., bringing EnCap’s total commitment to $600 million.

Pegasus received an initial commitment of $300 million from EnCap in November 2017. The company is focused on the acquisition and management of mineral and royalty properties in the core of the Delaware and Midland Basins.

“Our goal at Pegasus has always been to create long-term value by building a portfolio of mineral and royalty interests with sustainable, multi-generational growth potential,” Pegasus Chief Executive Officer George M. Young Jr. said in a news release.

“EnCap has been an outstanding equity partner from the beginning and this additional capital allows us to continue to source best-in-class opportunities, under the premier operators, in the most prolific oil and gas basin in the world,” Young said.

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“This second infusion of equity is a testament to our confidence in the Pegasus team and their overall development strategy,” EnCap Co-Founder and Managing Partner David Miller said in the release. “We look forward to continuing our successful partnership and being part of the Pegasus growth story.”

Since 2017, Pegasus has assembled a team representing decades of experience in land, geology, and engineering, and has expanded its accounting and finance capabilities to manage its rapidly growing portfolio of producing properties, Pegasus said in the announcement.

Pegasus continues its partnership with Tilden Capital LLC. Tilden has a long track record of successfully sourcing and closing mineral and royalty acquisitions across various basins, and specifically the Permian Basin, the release said.

“We are pleased with the significant deal flow we continue to see and are confident in the mineral and royalty space as a whole,” Young said. “Our team has the capability to stay up-to-date on broad trends in the Permian Basin, which allows us to identify areas with solid well performance and the best potential for long-term upside.”

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Pegasus is led by Young, President and Chief Operating Officer Will O. Rodgers, and Chief Financial Officer Lynn Frank.

Since 1988, EnCap Investments has been a leading provider of venture capital to the independent sector of the U.S. oil and gas industry. The firm has raised 21 institutional oil and gas investment funds totaling approximately $37 billion and currently manages capital on behalf of more than 350 U.S. and international investors.

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– FWBP Staff