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Kayne Anderson Capital Advisors
Strategies | Energy Private Equity




Kayne Anderson Capital Advisors: Energy Private Equity

Private Investments in Growth-Oriented Oil & Gas Companies

Kayne Anderson Capital Advisors has engaged in private energy investing since 1991. With $1.85 billion of capital under management, we manage a series of investment partnerships dedicated to private equity financings for high-growth exploration and production, midstream and oilfield service companies. Our investment philosophy is to provide high-quality, return-driven management teams with the growth capital necessary to execute on clearly-defined business plans that can generate value across diverse commodity price environments. With an unmatched level of in-house technical and capital markets expertise, we are in a position to deliver a unique, value-added working partnership to each of our portfolio companies.

We invest principally in privately-issued common and preferred securities of both private and public companies. Our target investment size is generally $20 million to $100 million, but we can arrange larger financings through our extensive network of co-investors. We can hold majority or minority stakes, and typically have significant board representation on our portfolio companies.

For more information on Kayne Anderson's energy private equity investing, please contact:

Daniel Weingeist at (713) 655-7351
or
Robert Sinnott at (310) 284-5508.



Kayne Anderson Energy Private Equity Group

Our Energy Private Equity Group manages a series of investment partnerships dedicated to private equity financings for high-growth exploration and production, midstream and oilfield service companies.


Kayne Anderson Private Equity Energy Investments Group



Kayne Anderson Energy Investments

  • Private investments in hedge funds (1991-1997)
  • Kayne Anderson Energy Fund $112.5mm (1998)
  • Kayne Anderson Energy Fund II $240mm (2002)
  • Kayne Anderson Energy Fund III $550mm (2004)
  • Kayne Anderson Energy Fund IV $950mm (2006)


Identify Proven, Growth-Oriented Management Teams

The cornerstone of Kayne Anderson's energy investment strategy is to identify exceptional oil and gas management teams in need of long-term growth capital to finance clearly-defined business plans. Kayne Anderson seeks management teams with extensive experience and a track record of creating shareholder value. Kayne Anderson's management teams are able to source and evaluate acquisition and expansion opportunities and to formulate and execute development plans that generate accelerated growth.

Leverage In-House Technical Expertise

Kayne Anderson's investment professionals are uniquely qualified to evaluate oil and gas investment opportunities. Kayne Anderson's in-house reservoir engineers have dedicated their entire careers to the oil and gas industry, gaining extensive experience as reservoir engineering consultants and as reservoir and operations engineers at various oil and gas companies. This technical expertise allows for a better understanding of the unique risks associated with each investment opportunity without having to rely on third party consultants. The ability to provide investment decisions in a timely manner makes Kayne Anderson the ideal capital provider for management teams operating in a dynamic industry.

Align the Interests of Management with Shareholders

Kayne Anderson seeks to align the interests of management with those of its shareholders by linking compensation to profit creation, with the goal of encouraging management to target a return on capital rather than sheer growth. Management teams of Kayne Anderson's portfolio companies typically have meaningful personal investments in their companies and are therefore incentivized to strive for a high rate of return while staying focused on capital preservation. Kayne Anderson applies these guiding principles and the firm's deep transactional experience to develop structuring solutions to address the needs of each investment opportunity.

Work Closely with Management Teams to Maximize Investment Performance

The strength of Kayne Anderson's investment approach is found not only in its ability to understand opportunities in markets not followed by the traditional investment community, but also in its emphasis on close working relationships. Kayne Anderson attempts to leverage management to greater performance by delivering a full range of business planning, corporate finance and capital markets expertise to complement the operational know-how of each portfolio company. Management teams also benefit from the extensive array of industry contacts established by Kayne Anderson's investment professionals over longstanding careers.


Adventure Exploration

Initial Investment: June 2007

Adventure Exploration is a private exploration and production company based in Midland, Texas that focuses on acquiring and exploiting properties in West Texas and Southeast New Mexico. Adventure leverages its engineering expertise to target underdeveloped fields with unrealized upside potential.

Augustus Energy

Initial Investment: September 2006

Augustus Energy is a private exploration and production company based in Billings, Montana that focuses on the acquisition of oil and gas properties in the Rocky Mountain, Mid-Continent and Gulf Coast regions.

Caddo Resources

Initial Investment: September 2006

Caddo Resources is a private exploration and production company based in Dallas, Texas that focuses on drilling and developing oil and gas properties in North Louisiana.

Calyx Energy

Initial Investment: March 2008

Calyx Energy is a private exploration and production company based in Tulsa, Oklahoma that focuses on the drilling and development of primarily gas assets in Northeastern and North-Central Oklahoma.

The Camcor Oil Sands Opportunity Fund

Initial Investment: April 2007

The Camcor Oil Sands Opportunities Fund, based in Calgary, Alberta, invests in a broad portfolio of private companies whose businesses are influenced by oil sands activity in Western Canada. The Fund’s investments may include companies involved in exploration and production, upgrading, service and supply, infrastructure, technology and environmental services.

Clipper Energy

Initial Investment: June 2007

Clipper Energy is a private exploration and production company based in Dallas, Texas that focuses on the development of assets located in the Central Kansas Uplift area of Central Kansas.

Crestwood Midstream

Initial Investment: November 2007

Crestwood Midstream Partners is a private midstream company based in Houston, Texas that focuses on the acquisition and development of North American midstream assets.

Cross Creek Energy

Initial Investment: May 2007

Cross Creek Energy is a private exploration and production company based in Houston, Texas that focuses on the acquisition and development of oil and gas properties primarily in East Texas.

Energy Contractors

Initial Investment: February 2008

Energy Contractors is a private oilfield services company based in West Virginia and focused on the Appalachian Basin market. Energy Contractors’ main service lines are rig mobilization, fluid management, frac tank rental, excavation services and well servicing.

Exaro Energy

Initial Investment: May 2007

Exaro Energy is a private exploration and production company based in Houston, Texas that focuses on the development of oil and gas properties in the San Joaquin Basin of California.

Great Plains Operating

Initial Investment: September 2007

Great Plains Operating is a private exploration and production company based in Grapevine, Texas that focuses on the acquisition and development of oil and gas properties in the western Anadarko Basin and the Texas Panhandle.

Grenadier Energy

Initial Investment: April 2007

Grenadier Energy Partners is a private exploration and production company based in The Woodlands, Texas that focuses on the acquisition and development of oil and gas properties primarily in the Barnett Shale and East Texas.

Highland Oil & Gas

Initial Investment: October 2007

Highland Oil & Gas is a private exploration and production company that focuses on the development of conventional oil and gas properties in the Arkoma and Anadarko Basins of Arkansas and Oklahoma. Highland seeks to amalgamate acreage positions and drill, exploit and develop its properties while maintaining low development costs, high operational margins and high success rates. Highland has offices in Houston, Tulsa and Fort Smith.

HRM Resources

Initial Investment: January 2008

HRM Resources is a private exploration and production company based in Denver, Colorado that focuses on the acquisition and development of long-lived oil and gas properties in the Rocky Mountain and Mid-Continent regions.

Katy Resources ETX, LLC

Initial Investment: May 2008

Katy Resources ETX is a private exploration and production company based in Dallas, Texas that focuses on the acquisition and development of oil and gas properties primarily in East Texas.

Laricina Energy

Initial Investment: December 2007

Laricina Energy is a private company based in Calgary, Alberta that focuses on the early stage acquisition and development of in situ Athabasca oil sands properties. Laricina’s strategy is to create value by developing a diverse portfolio of oil sands assets that leverage technology and market developments.

Matris Exploration

Initial Investment: November 2005

Matris Exploration is a private exploration and production company based in The Woodlands, Texas that focuses on development projects in the San Joaquin Basin of California.

OBENCO II

Initial Investment: July 2006

OBENCO II is a private exploration and production company based in Shreveport, Louisiana that focuses on the acquisition and development of oil and gas properties primarily in East Texas and other areas.

Pedernales Production

Initial Investment: January 2006

Pedernales Production is a private exploration and production company based in Houston, Texas that focuses on the acquisition and exploitation of oil and gas properties primarily in the Ardmore Basin of Oklahoma, South Louisiana and South Texas.

Plains All American Pipeline

Initial Investment: June 2001

Plains All American Pipeline is a publicly traded master limited partnership headquartered in Houston, Texas that engages in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products.

Plano Petroleum

Initial Investment: December 2007

Plano Petroleum is a private exploration and production company based in Plano, Texas that focuses on the acquisition and development of oil and gas properties in the Mid-Continent region and Texas.

Riverbend Exploration & Production

Initial Investment: April 2008

Riverbend Exploration & Production is a private exploration and production company based in Houston, Texas that focuses on acquiring non-operated working interests and participating as a non-operated working interest owner in drilling opportunities. Riverbend will also make small private equity investments in early stage energy companies.

Sagebrush Resources

Initial Investment: November 2007

Sagebrush Resources is a private exploration and production company based in Denver, Colorado that focuses on the acquisition and development of oil and gas properties in the Rocky Mountain region. Sagebrush seeks to acquire and exploit assets with upside potential through production optimization and cost savings, horizontal drilling, drilling and automation technology, fracturing and commingling and secondary and tertiary recovery.

Trail Ridge Energy

Initial Investment: April 2008

Trail Ridge Energy Partners is a private exploration and production company based in Dallas/Fort Worth, Texas that focuses on the acquisition and development of oil and gas properties in the Texas Panhandle and surrounding areas. Trail Ridge’s strategy is to acquire and exploit assets with upside potential through production optimization and cost savings, drilling and automation technology, fracturing and commingling, and secondary / tertiary recovery operations.

Vada Group

Initial Investment: December 2006

Vada Group is a private exploration and production company based in Port Allen, Louisiana that focuses on the acquisition and development of oil and gas properties in Louisiana and other Gulf Coast states.

Winter Ridge Energy

Initial Investment: September 2006

Winter Ridge Energy is a private exploration and production company based in Denver, Colorado that focuses on the acquisition and development of oil and gas properties in the Rocky Mountain region and California.


ENERGY COMPANIES INTERACTIVE MAP:


Bargo Energy

Initial Investment: May 1999
Realization: May 2002

Bargo Energy was an exploration and production company based in Houston, Texas that focused on the acquisition, divestiture, development and production of oil and gas properties in Texas, Louisiana, California and New Mexico.

Blacksand Energy

Initial Investment: July 2005
Realization: July 2006

Blacksand Energy was a private exploration and production company based in Denver, Colorado that focused on production and development of primarily oil reserves in California.

Canaan Natural Gas

Initial Investment: September 2002
Realization: September 2003

Canaan Natural Gas was a private exploration and production company based in Oklahoma City, Oklahoma that focused on acquiring and exploiting long-lived natural gas reserves in the Anadarko and Arkoma Basins of Oklahoma and Arkansas.

Cannon Energy

Initial Investment: March 2003
Realization: October 2006

Cannon Energy was a private exploration and production company based in Tulsa, Oklahoma that focused on developing coalbed methane assets in the Piceance and Appalachian Basins.

Cavallo Energy

Initial Investment: October 2005
Realization: February 2007

Cavallo Energy was a private exploration and production company based in Houston, Texas that focused on the acquisition and development of oil and gas properties in the Texas Panhandle.

Core Energy Holdings

Initial Investment: October 2005
Realization: November 2007

Core Energy Holdings was a private exploration and production company based in Traverse City, Michigan that focused on CO2 enhanced oil recovery projects in Northern Michigan.

Crusader Energy, Crusader Energy II and Crusader Energy III

Initial Investment: May 2004, August 2005, November 2005
Realization: October 2005, September 2006

Crusader Energy, Crusader Energy II and Crusader Energy III were private exploration and production companies based in Oklahoma City, Oklahoma that focused on acquiring and exploiting oil and gas properties in Oklahoma and the Texas Panhandle.

Ensign Oil & Gas

Initial Investment: October 2002
Realization: August 2005

Ensign Oil & Gas was a private exploration and production company based in Denver, Colorado that focused on the acquisition, development and exploitation of oil and gas properties in the Rocky Mountain and Mid-Continent regions.

The Exploration Company

Initial Investment: August 2003
Realization: November 2005

The Exploration Company is a publicly traded exploration and production company based in San Antonio, Texas that focuses on the development of oil and gas properties in the Maverick Basin of South Texas.

Lyco Energy

Initial Investment: December 2003
Realization: August 2005

Lyco Energy was a private exploration and production company based in Dallas, Texas that focused on the development and exploitation of primarily oil properties in Montana.

MarkWest Energy

Initial Investment: July 2004
Realization: July 2006

MarkWest Energy is a publicly traded master limited partnership headquartered in Denver, Colorado that engages in the gathering, transportation and processing of natural gas; the transportation, fractionation and storage of NGLs; and the gathering and transportation of crude oil. It conducts its operations in the Southwest, Northeast and Gulf Coast regions of the United States.

Medicine Bow Energy

Initial Investment: January 2004
Realization: August 2005

Medicine Bow Energy was a private exploration and production company based in Denver, Colorado that focused on the acquisition and exploitation of oil and gas properties in the Rocky Mountain region and East Texas.

Meridian Resource

Initial Investment: June 1999
Realization: April 2005

The Meridian Resource Corporation is a publicly traded exploration and production company based in Houston, Texas that focuses on the exploration and development of oil and gas reserves in Louisiana, Texas and the Gulf of Mexico.

Plains All American Pipeline

Initial Investment: June 2001
Realization: December 2007

Plains All American Pipeline is a publicly traded master limited partnership headquartered in Houston, Texas that engages in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products.

Plains Resources

Initial Investment: August 1998
Realization: July 2004

Plains Resources was a publicly traded energy company based in Houston, Texas that focused on acquiring, exploiting and developing primarily oil properties in California.

Profico Energy

Initial Investment: February 2001
Realization: August 2005

Profico Energy was an exploration and production company based in Calgary, Alberta that focused on the development of primarily gas properties in Saskatchewan.

Quintana Minerals

Initial Investment: September 2002
Realization: May 2004

Quintana Minerals was a private exploration and production company based in Houston, Texas that focused on aggregating and exploiting oil and gas properties in Canada.

Sentra Resources Corporation

Initial Investment: November 2000
Realization: April 2005

Sentra Resources Corporation was a private exploration and production company based in Calgary, Alberta that focused on exploring, acquiring and exploiting oil and gas assets in the Western Canadian Sedimentary Basin.

Stylus Exploration

Initial Investment: August 2001
Realization: February 2004

Stylus Exploration was a private exploration and production company based in Calgary, Alberta that focused on the development of oil and gas properties in Northeastern Alberta.

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