VC Firms must believe oil price will rebound

[dan_s]

Kayne Anderson commits $150M to new Houston upstream energy co.
Houston Business Journal: Jan 13, 2016, 2:00pm CST

Even as oil prices dip below $30 a barrel, new life springs forth from the oil patch in the form of PE-backed startups.

The latest in a string of new PE-backed Houston energy startups is Invictus Energy LLC, which announced on Jan. 13 that it had secured $150 million in an equity commitment from management and the energy arm of Los Angeles-based Kayne Anderson Capital Advisors LP, Kayne Anderson Energy Funds.

"Invictus is being formed to pursue lease and drill opportunities in North America," the company said in a statement.

The management team of Invictus includes ConocoPhillips and Rosetta Resources alumni. Rosetta Resources was acquired by Noble Energy Inc. (NYSE: NBL) for $2.1 billion in July.

The following individuals comprise the management team:
▪Kevin Green, president and CEO
▪Elliott Hough, COO
▪Robert Estrada, CFO
▪Jon Moreland, vice president of land

"Invictus will pursue leasehold opportunities with scalable development upside," the statement read. "The company will consider opportunities throughout select North American basins with an initial focus on the Eagle Ford and Permian Basin."

Invictus is the latest case of small energy upstarts looking to take advantage of cheap land and infrastructure assets expected to hit the market in large volumes this year.

WaterBridge Resources LLC, a new Houston company focusing on water infrastructure projects in the oil patch, announced its $200 million backing from Five Point Capital Partners on Jan. 6.

In December, UpCurve Energy LLC announced its $100 million backing from Post Oak Energy Capital LP to pursue horizontal recompletions and unconventional development in the Eagle Ford, Haynesville and Bakken.