KKR, Ch­e­sa­peake col­lab­o­rate on en­ergy in­vest­ment

The Washington Times Daily - - Business -

HOUS­TON | In­vest­ment firm Kohlberg Kravis Roberts & Co. and Ch­e­sa­peake En­ergy Corp. are team­ing up to in­vest in min­eral and royalty in­ter­ests in key U.S. oil and gas basins.

“Driven pre­dom­i­nantly by the re­cent ad­vance­ments in un­con­ven­tional oil and gas tech­nol­ogy, we con­tinue to see at­trac­tive op­por­tu­ni­ties to in­vest be­hind the do­mes­tic ex­plo­ration and pro­duc­tion of oil and gas,” KKR di­rec­tor Robert Antablin said in a state­ment. Mr. Antablin leads the New York com­pany’s roy­al­ties in­vest­ment strat­egy.

In­vest­ment firms are play­ing a big­ger role in the oil and gas sec­tor, as Che­niere En­ergy said last week that it will re­ceive $2 bil­lion in fi­nanc­ing from The Black­stone Group to fund the con­struc­tion of a nat­u­ral gas ex­port plant in Louisiana.

KKR has in­vested in the en­ergy sec­tor for more than 20 years, be­gin­ning with an in­vest­ment in Union Texas Petroleum in 1985.

KKR and Ch­e­sa­peake said Tues­day that they will ini­tially con­trib­ute a com­bined $250 mil­lion to the part­ner­ship. Ch­e­sa­peake, the sec­ond-largest nat­u­ral gas pro­ducer in the U.S., will pay 10 per­cent of that amount and source, ac­quire and man­age the royalty in­vest­ment op­por­tu­ni­ties.

The com­pa­nies will jointly over­see the part­ner­ship.

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