Providence Energy Ltd. (“Providence” or the “Company”) and funds managed by Oaktree Capital Management, L.P. (“Oaktree”) today announce the formation of a new mineral and royalty acquisitions company, Sierra Energy Holdings, LLC (“Sierra”), backed with $500 million in equity commitments. Sierra will pursue the acquisition of mineral and royalty interests throughout the continental United States.
Formed in 1993, Providence is a privately held energy investment and management company headquartered in Dallas, Texas. The Company was originally formed to acquire and manage mineral, royalty and non-operated working interest assets throughout the United States. In 2010, Providence began investing in renewable energy resources, including wind, hydropower and alternative fuel-based power generation. In early 2015, Providence further differentiated itself by forming Providence Energy Operators, LLC (“PEO”), an exploration and production company primarily focused on direct investments in working interest assets in the most profitable oil and gas regions across the country.
“Providence has always been a company with a family atmosphere, committed to treating our staff and our business partners with respect and honesty. For these reasons Providence enjoys an excellent reputation throughout the energy industry, which has supported our efforts to create a sustainable company through responsible energy development, whether that be in minerals, direct working interest investment or renewable energy,” said Mike Allen, President of Providence Energy Ltd.
Phil Ream, COO of Providence Energy Management, LLC, the service provider for Sierra Energy Holdings added, “I am excited to lead the Sierra efforts and think our decades of industry experience and knowledge, combined with the strong financial backing and support from Oaktree will enable Sierra to quickly evaluate and close on targeted mineral and royalty opportunities. Our aim is to provide financial solutions to land owners, mineral companies, high net-worth families and institutional mineral owners, and do so with the highest level of integrity.”
Kaj Vazales, Co-Head of North America for Oaktree’s Global Opportunities strategy, said, “We are excited to partner with the Providence management team, who has extensive experience in acquiring and managing mineral and royalty assets. Oaktree’s equity commitment will allow Mike and his team to apply their proven framework to opportunities which we believe will generate attractive returns to our investors over the long-term.”
Providence is a privately held energy investment and management company formed in 1993 and based in Dallas, Texas. Over the past 27 years, Providence has acquired and managed upstream oil and gas properties across the United States. Currently, Providence owns and/or manages interests in nearly 2 million gross acres of minerals, with interests in over 10,000 producing wells.
In addition to oil and gas, and since 2010, Providence has been an active investor in renewable energy resources, including in wind, hydropower and alternative fuel-based power generation.
For more information, please visit www.providence-energy.com
Oaktree is a leader among global investment managers specializing in alternative investments,
with $156 billion in assets under management as of June 30, 2021. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
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Redbird Communications Group