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Kayne Anderson Energy Funds Announce Consolidation Under 89 Energy III, LLC

89 Energy III, Kayne Anderson

Business Wire – Kayne Anderson Energy Funds is pleased to announce the all-equity consolidation of Casillas Petroleum Resource Partners, LLC, Native Exploration Holdings, LLC, and Acacia Exploration Partners, LLC to form 89 Energy III, LLC (“89 Energy III”). Concurrent with the consolidation, 89 Energy III closed on a new syndicated credit facility and received additional equity contributions from energy private equity funds managed by Kayne Anderson. Kayne Anderson’s energy private equity platform is also excited to announce a new partnership with the 89 Energy III management team who will serve as the new leadership for the business going forward.

89 Energy III successfully closed on a new, three-year credit facility with a majority of the existing lending syndicates of the predecessor companies. At close, 89 Energy III’s credit facility had a $250 million borrowing base with Wells Fargo Bank, N.A. serving as Administrative Agent. Wells Fargo Securities, LLC served as Left Lead Arranger on the syndication of the credit facility.

This consolidation further strengthens the financial and operating position of 89 Energy III allowing it to realize day-one structural cost reductions, leverage scale for additional savings opportunities, and to pursue the prudent and efficient development of its high-quality drilling inventory. 89 Energy III’s operating footprint consists of approximately 80,000 net acres across Oklahoma, with approximately 21,000 net boe/d of production. Additionally, 89 Energy III will manage the assets of Triumph Energy Partners, LLC (“Triumph”), which consists of approximately 15,000 net acres in STACK with approximately 6,500 net boe/d of production.

John-Mark Beaver, President, and CEO at 89 Energy III, said, “We are pleased to announce the partnership with Kayne Anderson’s energy platform along with this transformative consolidation that provides scale and strong financial footing for a one-of-a-kind, highly economic Mid-Continent asset. 89 Energy III is well-positioned to evolve with the changing energy landscape and to thoughtfully develop our assets and pursue strategic, scalable opportunities.”

Ryan Sauer, Managing Director at Kayne Anderson Energy Funds, said, “We are excited about partnering with the talented 89 Energy III management team and will look to create substantial value in our current Mid-Continent asset through both the continued exploitation of the existing inventory and further consolidation within the Anadarko Basin.”

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