Warburg Pincus’ $150 million capital commitment to Stronghold Energy II Holdings, LLC


Kirkland & Ellis LLP advised Warburg Pincus on the deal

Stronghold Energy II Holdings, LLC (“Stronghold” or “the Company”), a newly formed oil and gas exploration and production company, today announced that it has received a line of equity financing of up to $150 million from funds affiliated with Warburg Pincus, a global private equity firm focused on growth investing. Formed in December 2017 and headquartered in Midland, Texas, Stronghold Energy II is focused on the Central Basin Platform (“the Platform”) of the Permian Basin and intends to acquire meaningful acreage positions for oil and gas de velopment. The team expects to capitalize on its recent success in the region and apply its highly technical geological approach to exploiting areas across the Platform. Stronghold is led by Steve Weatherl, an Exxon-trained geologist with extensive Permian experience and more than 35 years in the industry, including serving as Vice President of Exploration at another private equity-backed company where he built a Wolfcamp position that ultimately spanned approximately 50,000 acres in the Southern Midland Basin, and General Manager and Vice President of the Midland Division at EOG Resources, where he ran up to a 10-rig program and invested more than $500 million at attractive rates of return. Mr. Weatherl also served as Vice President of Exploration, USA at Pioneer National Resources and Chief Operating Officer at Ener Quest Oil & Gas. Mr. Weatherl is joined by a senior team with a strong track record in the Permian including Travis Lain, Chief Operating Officer, who previously served as Operations Manager for the Midland Division at EOG Resources, and Caleb Weatherl, President and Chief Financial Officer, former Chief Financial Officer for Desert Royalty Company.

The Kirkland team was led by corporate partner Adam Larson (Picture) and associates Jeannie Poland, Leslie Vaughn and Michelle Williamson; and tax partner Mark Dundon.

Involved fees earner: Adam Larson – Kirkland & Ellis; Jeannie Poland – Kirkland & Ellis; Leslie Vaughn – Kirkland & Ellis; Michelle Williamson – Kirkland & Ellis; Mark Dundon – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Warburg Pincus;

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Author: Ambrogio Visconti