The boost in Permian Basin drilling and production during the past decade has prompted a surge in interest from private equity firms that saw opportunities in the region.It's been said that as many as 200 to 300 companies working in the Permian are backed by private equity.Some of the largest Permian M&A deals closed in the past three years have involved private-equity-backed E&Ps being sold for huge returns.For example,Silverback Exploration I,active in Reeves County,sold to Centennial Resource Development for $855 million in 2016 and promptly formed Silverback II.Both times it was backed by EnCap Investments.In February 2019,EnCap funded Pegasus Resources LLC again,a Fort Worth mineral and royalty company,with an additional $300 million of equity,following a first commitment of $300 million in November 2017.Pegasus focuses on the Delaware and Midland basins.Publicly held Kimbell Royalty Partners LP acquired oil and gas royalty assets from EnCap for $151.3 million in a 100% equity transaction that same month,and these assets included production from the Permian Basin as well as other basins.
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