Three Rivers Operating Company News

Riverstone Holdings LLC Invests in Three Rivers Natural Resource Holdings II LLC to Acquire Assets in the Permian Basin

Austin, TX, and New York, NY, August 10, 2012 – Riverstone Holdings LLC (“Riverstone”) announced today that it has invested in Three Rivers Natural Resource Holdings II LLC (“Three Rivers II”), a new private upstream oil and gas company based in Austin, Texas. With this support, Three Rivers II executed a definitive agreement to acquire certain assets located in the Permian Basin of West Texas from Meritage Energy Company, LLC (“Meritage”). These properties include 15,000 net acres with current production of approximately 1,900 barrels of oil equivalent per day located in Howard, Glasscock, Martin, Dawson and Upton Counties, Texas.

Three Rivers II will focus on oil and gas acquisition opportunities in the Permian Basin, where its management team has a proven track record of success. Most recently, the management team led Three Rivers Natural Resource Holdings LLC (“Three Rivers I”), which sold its assets to an affiliate of Concho Resources Inc. earlier this year for approximately $1.0 billion. The team has significant experience in managing exploration and production assets, both in the Permian Basin and other regions of the United States.

Mike Wichterich, CEO of Three Rivers II, said, “We are excited to continue our successful relationship with Riverstone and appreciate their confidence in our team and business plan.  The Meritage assets will provide a strong foundation for Three Rivers II as we continue to seek attractive new opportunities to expand our Permian position over time.”

Pierre Lapeyre and David Leuschen, Co-Founders of Riverstone, added, “We are delighted to be working with Mike and his team again. This investment exemplifies Riverstone’s strategy of re-partnering with proven management teams with deep, basin-focused operating expertise. We look forward to repeating the success we had with Three Rivers I.”

About Riverstone Holdings LLC

Founded in 2000, Riverstone Holdings LLC is an energy and power-focused private equity firm with over $22 billion of equity capital raised across seven investment funds and co-investments, including the world’s largest renewable energy fund. Riverstone conducts buyout and growth capital investments in the midstream, exploration & production, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London and Houston, the firm has committed approximately $18.9 billion to 88 investments in North America, Latin America, Europe and Asia. For more information, visit www.riverstonellc.com.

About Meritage Energy Company, LLC

Founded in 2010, Meritage Energy Company, LLC is the third company built and sold over a 10 year period by Thomas J. Corley and Sam D. Winegrad, with the support and backing of various institutional and private investors.  The sale of this asset base follows its successful 2010 sale of Wolfberry assets in the Permian Basin.

 

Contact:

James David or Jeffrey Taufield
Kekst and Company
(212) 521-4815

 

Riverstone Holdings Makes Additional Investment in Three Rivers Natural Resource Holdings LLC to Significantly Expand its Position in the Permian Basins

The Riverstone/Carlyle Global Energy and Power Funds, a group of energy-focused private equity funds managed by Riverstone Holdings LLC (“Riverstone”), announced today that an additional investment was made in Three Rivers Natural Resource Holdings LLC (“Three Rivers”), a private upstream oil & gas company based in Austin, Texas. Separately, Three Rivers acquired certain assets located in the Permian Basin of West Texas and Southeast New Mexico from Samson Resources and its affiliates (“Samson”).

Combining the most recent acquisition with the transaction announced in April 2010, Three Rivers has an ownership interest in more than 1,400 wells, with daily production of approximately 7,400 barrels of oil equivalent per day, and proven reserves of 86 million barrels of oil equivalent. Three Rivers expects 2011 full year revenue to be approximately $150 million.

Mike Wichterich, CEO of Three Rivers, said, “Riverstone’s demonstration of confidence in our team and business plan represents an exciting opportunity to grow our operations throughout the Permian. Without their experience and knowledge of the E&P business, our transaction with Samson would not have been possible.”

Pierre Lapeyre and David Leuschen, Co-Founders of Riverstone, added, “We are excited to support Three Rivers in achieving this milestone in their business plan. We look forward to their continued growth.”

About Three Rivers
Three Rivers is a private, upstream oil and gas company headquartered in Austin, Texas. The Company is focused on the acquisition, development and exploitation of oil and natural gas reserves in the Permian Basin in West Texas and Southeast New Mexico.

About Riverstone Holdings LLC
Riverstone Holdings LLC, an energy and power-focused private equity firm founded in 2000, has approximately $17 billion under management across six investment funds, including the world’s largest renewable energy fund. Riverstone conducts buyout and growth capital investments in the midstream, exploration & production, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London and Houston, the firm has committed approximately $15.6 billion to 75 investments in North America, Latin America, Europe and Asia. For more information, visit www.riverstonellc.com.

Contact:
Three Rivers
Gabe Ellisor
Chief Financial Officer
512-600-3181