BIG MONEY thinks oil price is going higher

[dan_s]

By Olivia Pulsinelli – Senior web editor, Houston Business Journal

4 hours ago

Houston-based private equity firm EnCap Investments LP said in a Dec. 4 press release that it closed its latest fund with capital commitments of $7 billion.

That’s above EnCap Energy Capital Fund XI LP’s target, which the Wall Street Journal reports was set at $6.5 billion. It’s also one of the biggest energy-focused private equity funds of the year, per the WSJ.

EnCap’s previous fund — EnCap Energy Capital Fund X LP — closed at $6.5 billion in April 2015. Since it was formed in 1988, EnCap has managed about $34 billion of capital commitments and invested in more than 240 companies, per the company’s press release.

EnCap Energy Capital Fund XI LP is the firm’s 20th institutional fund to date and will target the upstream sector of the oil and gas industry in North America, per the release. The Permian Basin in Texas and New Mexico and the Scoop and Stack of Oklahoma are among the regions EnCap will continue to favor, per the WSJ.

“Fund XI allows us to continue to build upon our 29-year track record of building companies in the upstream sector with proven high quality management teams,” Doug Swanson, an EnCap managing partner, said in the release. “The opportunity set for investment remains compelling and dynamic and we are pleased to have a new pool of capital from a diverse range of investors to begin taking advantage of opportunities in the marketplace.”

Between the beginning of 2015 and the end of September, EnCap deployed $7.8 billion into upstream deals, the WSJ reports.