Private Equity Finds Variety in Energy Investing

A consortium, which includes Kohlberg Kravis Roberts, Natural Gas Partners, Crestview Partners and Itochu, has completed its $7.2 billion acquisition of Samson Investment Company. The acquired company, which is being renamed Samson Resources, owns interests in over 10,000 wells, and the transaction included all of its assets except its onshore Gulf Coast and offshore deep water Gulf of Mexico assets.

Since the beginning of 2008, PE investors have invested in 195 companies in the Energy Exploration, Production & Refining industry, according to the PitchBook Platform. Although buyouts have been the most commonly used investment strategy in the industry, it has only been by a small margin. With a 28% share of the activity, growth investments are the second most popular investment strategy. Other popular strategies are acquisition financing and add-on acquisitions.