EagleRidge Energy, LLC – EGI

EagleRidge Energy, LLC

Key Takeaway

Low-cost growth platform

In 2015, EagleRidge, a low-cost natural gas producer in the Barnett Shale, was liquidity constrained and close to breaching covenants after a fracking moratorium in the company’s operating area put pressure on earnings. We invested preferred equity into EagleRidge in June 2015 to provide covenant relief and working capital to the company, allowing it to resume a development plan. Since then, we have worked closely with the company to drive operational enhancements and to execute partnerships and JVs, nearly doubling the number of wells that EagleRidge operates. We believe the company has one of the lowest operating cost profiles in the Barnett, and we continue to support management in evaluating and funding acquisitions.