NGP Doubles Down on Shale Oil Team

February 2, 2016
Wall Street Journal

Oil prices may have fallen once again, but that hasn’t scared off energy-focused NGP Capital Management.

The private equity firm is investing $200 million in PCORE Exploration and Production II LLC to back exploration and production in unconventional oil plays. PCORE’s team is no stranger to NGP. The firm backed the team in May 2014 with a $100 million investment in PCORE Exploration and Production LLC to pursue exploration and production opportunities in the Wolfcamp and Spraberry shale formations in West Texas.

The firm ultimately sold that company’s assets to Parsley Energy early this year before funding the team again with PCORE II.

“We think there is a tremendous opportunity presenting itself right now in the shale space to actually get in when oil prices are in the 30s and then exit at some type of higher price,” Mark Hiduke, chief executive of PCORE II, told LBO Wire. “I don’t think there’s anyone in this industry who doesn’t think we’ll have some sort of price recovery in the next couple of years.”