Venado adds to Eagle Ford assets through $770M deal

By Luke Geiver | March 26, 2018

Roughly two years after partnering, KKR and Venado Oil and Gas LLC have acquired their second Eagle Ford asset package. The Texas-based entities have agreed to acquire Cabot Oil & Gas Corp.’s non-operated Eagle Ford assets for nearly $770 million. The assets included in the deal are located in the Eagle Ford oil window in Atacoasa, Frio and LaSalle Counties. Wells there produced 85 percent oil in Q4 last year.

Scott Garrick, Venado’s CEO, said the Austin-based firm is excited to apply its drilling and completion designs to the newly acquired properties. The plan moving forward, Garrick said, is to operate within free cash flow.

“We continue to see an attractive market opportunity throughout the Eagle Ford trend and believe we are well positioned for future growth and long-term value creation through strong operational execution,” said David Rockecharlie, head of energy real assets for KKR.

Last year in March, Venado acquired the non-operated assets of SM Energy for $800 million. The combined assets from SM Energy and Cabot will give Venado interests in 112,000 net acres and more than 43,000 barrels of oil equivalent per day from the Eagle Ford.

Post-transaction, Cabot will become a pure play Marcellus operator.