Post Oak Minerals V, LLC (“POM V”), an affiliate of Post Oak Energy Capital, LP (“Post Oak”), has announced a significant milestone in its acquisition strategy. Since the start of 2024, POM V has successfully completed ten acquisitions, totaling a remarkable value of over $475 million. These acquisitions have primarily been centered in the prolific Permian Basin, a region renowned for its rich hydrocarbon resources and substantial production potential.
The assets acquired by POM V encompass over 28,400 net royalty acres (“NRA”) of mineral and royalty interests. Of these, a substantial 27,400 NRA are situated in the Permian Basin, with the remaining acreage distributed across the Eagle Ford and Haynesville shale trends. A noteworthy component of these acquisitions includes approximately 24,000 NRA of 100% fee minerals in the Midland Basin, purchased from Apache Corporation and its subsidiaries. The rest of the acquired assets were sourced from a variety of sellers, including Hunt Oil Company, other family offices, and private individuals.
Post Oak Minerals, LLC (“Post Oak Minerals”), the dedicated in-house mineral and royalty investment platform for Post Oak, will manage these newly acquired assets. This addition brings the total oversight of Post Oak Minerals to over 80,000 NRA of mineral and royalty interests, with about 50,000 NRA located in the Permian Basin. These assets are part of the portfolios of multiple private institutional investment funds managed by Post Oak, reflecting the company’s robust management capabilities and strategic vision.
Eric Madry, Managing Director of Post Oak Minerals, expressed his enthusiasm about the acquisitions: “We are delighted to capture a rare opportunity to own a large-scale minerals position in the heart of the Permian Basin with substantial remaining undeveloped resources. These interests are in proven areas with some of the best geology and lowest breakeven development costs in the United States. They are being actively developed by premier, well-capitalized operators that are executing full pad development programs. We were able to move swiftly to capture these assets at an attractive risk-adjusted valuation due to our close collaboration with Post Oak as an in-house platform.”
The strategic importance of these acquisitions aligns with Post Oak’s long-standing investment strategy in the mineral and royalty sector. Frost Cochran, Managing Director and founding partner of Post Oak, highlighted the consistency of their approach: “The recent acquisitions by POM V reflect a continuation of Post Oak’s mineral and royalty investment strategy, which we have successfully executed since our first fund in 2011. Permian Basin minerals have consistently proven to be an extraordinary asset class given the perpetual ownership of thousands of feet of economic stacked pay resource. This provides multi-decade exposure to industry advances without the associated capital or operating expenditures.”
The Permian Basin continues to be a focal point for mineral and royalty investments due to its prolific oil and gas production potential. The basin’s geology offers extensive stacked pay zones, which allow for multiple layers of hydrocarbon extraction, enhancing the economic viability of these assets. The recent acquisitions by POM V underscore the strategic importance of securing high-quality mineral interests in this region, especially those managed by well-established operators with a track record of efficient and cost-effective development.
Greenhill & Co, Inc., a Mizuho affiliate, played a crucial role in facilitating the acquisition of Midland Basin minerals from Apache Corporation and its subsidiaries. Acting as the exclusive financial advisor to Post Oak, Greenhill & Co, Inc. provided expert guidance and support, ensuring the successful completion of this high-value transaction.
In summary, Post Oak Minerals V, LLC’s recent acquisitions mark a significant expansion of their mineral and royalty interests, reinforcing their position as a leading player in the Permian Basin. With a robust portfolio managed by experienced professionals and supported by strategic financial advisors, Post Oak is well-positioned to capitalize on the long-term value and opportunities within the energy sector. This latest move not only enhances their asset base but also solidifies their commitment to sustained growth and value creation in the mineral and royalty investment landscape.
