Double Eagle Energy raises more than $1bn from PE firm

US-based energy company Double Eagle Energy Holdings III has raised more than $1bn through equity commitments from funds managed by affiliates of private equity (PE) firm Apollo Global Management.

The aggregate amount also includes a recent capital raise secured by the company.

The equity commitments will be used to fund Double Eagle’s ongoing acquisition and development initiatives in the Permian Basin.

In addition, the capital raising will enable the company to expand its asset base.

Double Eagle Energy Holdings III co-CEO Cody Campbell said: “We are excited by the opportunity for Double Eagle to continue to pursue assets in the Permian Basin.

“With this additional support and capital, we have the clear opportunity to create a tremendous amount of value and look forward to working with our sponsor team in executing our operating plans.”

The development comes after Double Eagle’s co-CEOs John Sellers and Cody Campbell sold the predecessor company Double Eagle Energy Permian to Parsley Energy for around $2.8bn.

In August last year, affiliates of Apollo Global Management and Double Eagle Development formed Double Eagle Energy Holdings III to primarily focus on investing in oil and gas properties in the Permian Basin.

Double Eagle Energy Holdings III co-CEO John Sellers said: “In addition to leveraging our land acquisition capabilities, we are focused on working with Permian operators to execute trades to drill extended lateral horizontal wells. We plan to have our first operated rig running in April of this year.”