Sheridan raises $1.5bn to buy onshore US oil and gas assets

Houston-based oil and gas operating company Sheridan Production Partners has raised $1.5bn in equity commitments to acquire onshore US producing oil and gas properties.

The commitments were raised through the company’s third fund, Sheridan Production Partners III.

Sheridan has to date raised about $4.6bn in equity commitments via private placements of three series of investment vehicles since the company’s creation in 2006.

Sheridan founder and chairman Lisa Stewart said: "Declining petroleum prices create opportunities for Sheridan as companies seeking to pay down debt sell mature properties with predictable production that fit our successful business strategy: optimizing assets through operational improvements and cost savings, hedging the production for several years and enhancing returns through prudent leverage."

Stewart said Sheridan will continue to focus on transactions in the Mid-Continent area, primarily in Oklahoma, Texas, New Mexico and Wyoming, that complement the company’s existing assets.

Sheridan Production Partners III is under common management with the company’s earlier two funds and has a similar investment strategy.

The previous oil and gas partnerships have completed eight acquisitions for $5.2bn, featuring a combination of equity commitments and debt financing.

Sheridan plans to build a balanced portfolio of mature properties across various onshore basins in the US.

The company acquires mature assets and operates them to improve recovery via capital reinvestment while focusing on cost control.

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