Terra Energy Partners II, LLC (“Terra II” or the “Company”), a newly formed independent oil and natural gas company headquartered in Houston, Texas, today announced that it has secured over $300 million of equity commitments from Kayne Private Energy Income Fund III, L.P., a fund managed by Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”), and members of the Company’s management team.
Terra II will focus on the acquisition and development of large, cash flowing oil and natural gas assets with significant existing production throughout the Lower 48. The Company is led by Chief Executive Officer BJ Reynolds and Chief Operating Officer Wes Hobbs, who previously served in leadership roles at Terra Energy Holdings LLC (“Terra I”). Terra I, which operated in Colorado’s Piceance Basin, became one of the largest privately held natural gas producers in the U.S., producing approximately 600 MMcfe/d of net production at its peak. During Terra I’s nine-year tenure in the Piceance, the team drilled and completed more than 700 wells, vertically integrated its completion services via the purchase of Colorado’s first operator-owned electric frac fleet, and achieved a field-wide 80% reduction in methane intensity.
Terra II marks the second iteration of the Terra platform sponsored by Kayne Anderson, following the successful exit of Terra I earlier this year. Terra I was the inaugural investment of the Kayne Private Energy Income Funds strategy in 2016 and served as a foundational example of Kayne Anderson’s long-duration, cash flow-focused approach to upstream investing.
"We’re excited to renew our partnership with Kayne Anderson as we launch Terra II,” said BJ Reynolds, Chief Executive Officer of Terra II. “Building on the strong foundation and track record established with Terra I, we are confident in our ability to capture compelling opportunities in today’s market. With a proven team, disciplined strategy, and substantial equity backing, Terra II is well positioned to once again deliver outstanding results and long-term value for our shareholders.”
“Terra I was a defining investment for our Income Funds platform, and we’re proud to partner with this team again,” said Danny Weingeist, Managing Partner and Co-Head, Energy Private Equity at Kayne Anderson. “BJ, Wes, and the broader Terra team have an excellent operational and commercial track record, and we’re confident in their ability to drive value for our investors through Terra II.”
