Echo Minerals, an affiliate of Echo, has announced a significant milestone with the completion of an asset sale totaling over half a billion dollars. This notable transaction, conducted with Sixth Street Partners, involves the divestiture of a substantial portion of Echo’s net royalty acres in the prolific Permian and Anadarko basins.
The announcement marks a strategic pivot for Echo, as emphasized by Christian Kanady, Founding Partner and CEO of the company. “While energy remains a core focus of our strategy, we look forward to unlocking and advancing American innovation by making transformative investments in high-growth industries undergoing massive technological disruption,” Kanady stated. This move signifies the beginning of a new era for Echo, highlighting the company’s commitment to fostering innovation across various sectors.
This latest transaction follows Echo’s earlier divestiture of 3 percent of its mineral and royalty portfolio, valued at $35.4 million, in early 2022. The primary operators in the divested areas were Endeavor Resources and Pioneer Natural Resources, which recently completed a sale to ExxonMobil. The sale underscores Echo’s strategic approach to managing its portfolio and maximizing the value of its assets.
Zack Winegrad, Partner at Sixth Street, lauded Echo’s visionary growth strategy, stating, “Acquiring this premier acreage in the prolific Permian and Anadarko Basins is a continuation of our focus on growing our mineral and royalty platform. We commend Echo for its visionary growth of minerals and royalty holdings in promising acreage with proven production.” This acquisition aligns with Sixth Street’s ongoing efforts to expand its footprint in the energy sector through strategic investments in high-quality assets.
The proceeds from the transaction will enable Echo to further invest in projects and enterprises that renew and advance American innovation and resiliency. Echo’s investment strategy spans multiple high-growth industries, including energy, life sciences, national security, and media & entertainment. This diverse investment approach positions Echo at the forefront of transformative technological advancements, contributing to the overall growth and innovation within these sectors.
Throughout the negotiation process, Echo was represented by Evercore Inc., serving as the sole financial adviser, and Kirkland & Ellis, LLP, acting as legal counsel. Sixth Street was represented and received buyer counsel from White & Case LLP. The successful completion of this transaction underscores the effective collaboration between these esteemed firms, ensuring a seamless and efficient process.
Founded in 2010 by Christian Kanady, Echo is headquartered in the iconic Ziggurat building overlooking Kerr Park in downtown Oklahoma City. Echo operates as a multi-strategy investment firm, connecting overlooked domestic resources and infrastructure with world-class founders, ideas, and capital to generate exceptional financial and social returns. The firm’s unique approach blends venture capital, private equity, and impact investing, creating a dynamic portfolio that drives innovation and growth across multiple industries.
Echo’s investments are particularly prominent in sectors such as energy, life sciences, national security, and media & entertainment. The firm is a leading investor in companies like Wheeler Bio and Prairie Surf, and it manages a growing portfolio of investments in innovative enterprises that are disrupting traditional industries. Echo’s private equity holdings include a diverse real estate portfolio comprising landmark commercial properties across emerging U.S. urban markets, as well as a significant oil and gas royalty portfolio in the Permian and Anadarko basins.
The recent asset sale to Sixth Street Partners represents a strategic move for Echo, enabling the firm to reallocate resources and focus on high-growth industries poised for technological disruption. By leveraging the proceeds from this transaction, Echo aims to drive innovation and resilience across its investment portfolio, ultimately contributing to the advancement of American industries and the broader economy.
As Echo continues to navigate the evolving landscape of investment opportunities, the firm remains committed to its core values of innovation, growth, and impact. This milestone transaction not only reinforces Echo’s position as a leader in the energy sector but also highlights its broader vision of transforming industries through strategic investments in groundbreaking technologies and high-growth enterprises.
