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Perpetual Production and Castlelake Form Joint Venture to Acquire Mineral Interests

August 4, 2017

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Perpetual Production LLC (Perpetual), a multi-strategy, land-focused oil and natural gas company headquartered in Dallas formed to pursue the acquisition of minerals, royalties, and working interest positions across the lower 48, today announced a joint venture with Castlelake, L.P., a global private investment firm managing more than $10 billion in assets.

Perpetual and Castlelake, on behalf of the funds it manages, formed Perpetual Production – MidCon, LLC (PP MidCon) to focus on acquiring minerals and overriding royalty interests in the Mid-Continent, including the STACK, SCOOP and Merge plays. The joint venture will also consider other opportunistic transactions, such as acquisitions of operated and non-operated leasehold interests in other regions. PP MidCon will leverage Perpetual's experienced management team to execute this land-focused strategy. Led by President and CIO Josh Camp, the PP MidCon management team has an established track record investing in mineral interests, non-operated working interests, and operated leasehold assets in Oklahoma and other regions throughout the U.S.

"We are extremely excited to partner with the Castlelake team to pursue our mineral interest aggregation strategy. Castlelake's opportunistic investing approach in oil and gas aligns with our outlook and our focus on portfolio optimization through a balanced approach to risk and reward as well as evolving strategic focus as market dynamics change," said Mr. Camp. "The firm's flexibility and unique industry insights position PP MidCon to execute its on-the-ground investment strategy."

Castlelake's opportunistic approach to investing in oil and gas is characterized by a focus on small- to mid-size investment opportunities in quality assets where it can serve as a flexible capital partner. Castlelake funds have existing investments in the SCOOP, STACK, Permian Basin, Eagle Ford and Powder River Basin, involving mineral interest, operated leasehold, non-operated working interest, and drilling joint ventures. Castlelake funds' existing oil and gas investment structures include control equity capital sponsorships, mezzanine debt and direct asset ownership.

"The PP MidCon joint venture enhances Castlelake's ability to aggregate smaller, off-the-run mineral interest assets that may generate and preserve value in today's evolving economic environment," said Evan Carruthers, Managing Partner at Castlelake. "Perpetual's deep expertise in mineral interests and Castlelake's track record in oil and gas as a reliable, value-added capital partner create a strong joint venture platform." 

Perpetual is led by President and CIO Josh Camp, who most recently served as Director – Finance at American Energy Partners, LP (AELP), a $10 billion oil and gas investment platform founded by the late Aubrey K. McClendon, where he oversaw approximately $3 billion of mineral, royalty, leasehold and oil and gas infrastructure transactions. Mr. Camp is joined by VP – Land and Strategy, Chad Pinkerton, VP – Engineering and Acquisitions, Josh Voth, and Director of Land, Kris Price. Mr. Pinkerton previously worked at Sandridge Energy as Director of Land and was heavily involved in the company's growth in the NW STACK and North Park Basin. Mr. Voth previously worked as a Reservoir Engineer at AELP where he focused the majority of his time on American Energy – Minerals, LLC and American Energy – NonOp, LLC (now collectively, Heritage Resources Management, LLC). Mr. Price previously served as Land Manager at Rockwell Minerals, a privately funded, mineral acquisition company, where he led acquisition efforts in STACK and NW STACK.

Investments in oil and gas assets by Castlelake funds are managed by Castlelake's Dislocated Industries and Corporate Special Situations team. The team is comprised of professionals with deep expertise in identifying cyclical industries in need of liquidity and acting quickly to execute. Contact Castlelake's Dislocated Industries team by emailing [email protected]   

ABOUT PERPETUAL PRODUCTION

Founded in June 2017, Perpetual is a multi-strategy, land-focused oil and gas company with a broad mandate to pursue the acquisition of minerals, royalties, non-op working interests and leasehold. Perpetual is headquartered in Dallas, Texas and has an additional office in Oklahoma City, Oklahoma.

ABOUT CASTLELAKE

Castlelake, L.P. is a global private investment firm focused on investments in alternative assets, sub-performing loans, dislocated industries and corporate special situations, and is an experienced leader in aircraft ownership and servicing. Castlelake's team comprises more than 100 professionals, located in Minneapolis and London. Castlelake manages private funds and debt vehicles with approximately $10 billion in assets, on behalf of endowments, foundations, public and private pension plans, private funds, family offices, insurance companies and sovereign wealth funds.

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