ONE FUTURE WELCOMES FLYWHEEL ENERGY
HOUSTON – July 22, 2021 – Our Nation's Energy Future ("ONE Future") today announced that Flywheel Energy (“Flywheel”) has joined the Coalition. Flywheel is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Fayetteville Shale.
“One of Flywheel’s primary goals is the delivery of sustainable returns through operational excellence,” said Richard Hyde, Executive Director, ONE Future. “Through its participation in the Coalition and the knowledge sharing of our member companies, I have no doubt that Flywheel will easily surpass those goals.”
The ONE Future Coalition is a group of natural gas companies working together to voluntarily reduce methane emissions across the natural gas value chain to 1% (or less) by 2025 and is comprised of some of the largest natural gas production, gathering & boosting, processing, transmission & storage and distribution companies in the U.S. and represents more than 15% of the U.S. natural gas value chain. As a ONE Future member, Flywheel will report its 2020 methane results within the Production sector and hold a seat on the board of directors.
“Flywheel’s Mission is to - Responsibly provide reliable and affordable American energy, while achieving superior risk-adjusted returns for our investors. This includes a commitment to incremental ESG improvements, and more specifically GHG emissions improvements. We are always striving to operate responsibly and keep an open mind towards technological and operational innovation,” said Justin Cope, Flywheel’s Chief Executive Officer. “ONE Future’s alignment with our Mission, is what makes membership a good fit for our company.”
Through the efforts of coalition members, ONE Future has surpassed its one percent goal in each of the three years that it has reported its methane intensity. OThe 2019 Methane Intensity Report, released in November 2020, registered a 2019 methane intensity number of 0.334%: beating its one percent goal by 67%. This means that methane emissions by coalition members across the natural gas value chain consisted of only about one-third of one percent of all natural gas produced and delivered, demonstrating that the natural gas industry can minimize methane emissions and increase production and throughput while supplying much needed energy to the U.S. and around the globe for years to come.
About Flywheel Energy
Flywheel Energy is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Fayetteville Shale. Flywheel Energy began as Valorem Energy in early 2017 with backing from the Kayne Private Energy Income Fund. In 2017, Valorem acquired interests in the Williston Basin for $285 million, and subsequently sold those interests to Northern Oil & Gas in 2019.
In December 2018, Flywheel acquired Southwestern Energy’s upstream and midstream businesses in Arkansas’ Fayetteville Shale for $1.865 billion. Flywheel entities have made over $2.1 billion of acquisitions since 2017. For more information visit www.flywheelenergy.com.
About ONE Future
ONE Future was formed when seven companies came together in 2014 with a focus to collectively achieve a science- based average rate of methane emissions across our facilities equivalent to one percent (or less) of total natural gas production. Since our formation, we have grown to more than 45 companies accounting for some of the largest natural gas producers, transmission, and distribution companies in the U.S. ONE Future members operate in 13 out of the 38 production basins and other segments of the value chain operate in multiple regions of the country, hence ONE Future’s data represent a geographically diverse and material share of the U.S. natural gas supply chain.
Its members include Antero Resources, Apache, Ascent Resources, Atmos Energy, Berkshire Hathaway Pipeline Group, BKV Corporation, Black Hills Corporation, Blue Racer Midstream, Boardwalk Pipeline Partners, LP, Caerus Oil & Gas, Crestone Peak Resources, Crestwood, Consolidated Edison, Inc., Dominion Energy, DTE Energy, Duke Energy, EagleClaw Midstream, Enbridge, Encino, Enstor, Equitrans Midstream, Flywheel Energy, Hess, Jonah Energy, Kinder Morgan, National Grid, New Jersey Natural Gas, Northeast Natural Energy, NW Natural, ONE Gas, ONEOK, Sempra Energy, Sheridan Production Partners, Southern Company Gas, Southern Star, Southwestern Energy, Spire Energy, Summit Utilities, Targa Resources Corp.,TC Energy, Tug Hill Operating, UGI, Western Midstream, Williams, and Xcel Energy. For more information visit www.onefuture.us.
Media Contact ONE Future:
Beverly Jernigan
713-494-1733
beverly@beverlypr.com
Media Contact Flywheel Energy:
405-702-6991
info@flywheelenergy.com
Flywheel Achieves TrustWellTM Gold Rating
OKLAHOMA CITY, OKLAHOMA – September 17, 2020. Flywheel Energy, LLC, and certain wholly-owned subsidiaries (“Flywheel” or the “Company”), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Funds (“KPEIF”) platform, recently achieved a TrustWellTM Gold overall rating by International Environmental Standards PBC (“IES”) for its Fayetteville Shale gas production operations.
To achieve a TrustWellTM Gold overall rating, Flywheel underwent a rigorous review of hundreds of different aspects of their operations, including 32 required data elements that demonstrate Responsibly Sourced Gas (“RSG”) . The data elements pertain to greenhouse gas (“GHG”) and overall air emissions, environmental stewardship, spill prevention and response, waste management, emergency response preparedness, well integrity and other ESG related factors.
“We are proud of our TrustWellTM Gold rating as we continuously work to uphold the highest ESG standards in our daily operations. That said, we recognize the importance of and are committed to further improving our ESG performance over time,” commented Justin Cope, Chief Executive Officer of Flywheel. “Our commitment to safety and environmental stewardship remains a key element of our core behaviors as we work to create long-term value for our investors
and stakeholders.”
“The Income Funds platform is committed to safe and environmentally sound operations at all our companies,” said Danny Weingeist, Managing Partner of KPEIF. “Flywheel’s dedication to ESG has been exemplary and this recognition is well deserved.”
ABOUT FLYWHEEL ENERGY
Flywheel Energy is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Rockies and Mid-Continent. Flywheel Energy began as Valorem Energy in early 2017 with backing from the Kayne Private Energy Income Fund. In 2017, Valorem acquired interests in the Williston Basin for $285 million, and subsequently sold those interests to Northern Oil & Gas in 2019.
In December 2018, Flywheel acquired Southwestern Energy’s upstream and midstream businesses in Arkansas’ Fayetteville Shale for $1.865 billion. Flywheel entities have made over $2.1 billion of acquisitions since 2017.
ABOUT KAYNE ANDERSON CAPITAL ADVISORS
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on infrastructure, real estate, credit and private equity. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages over $30 billion in assets (as of 6/30/20) for institutional investors, family office, high net worth and retail clients and employs 370 professionals in five offices across the U.S.
The Kayne Private Energy Income Funds platform is part of Kayne Anderson’s successful energy private equity practice that has raised over $10 billion since 1998. The strategy was formed in late 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.
Kayne Anderson is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta, and Boca Raton. For more information, please visit www.kaynecapital.com
FLYWHEEL BAKKEN CLOSES ON SALE OF WILLISTON BASIN ASSETS
OKLAHOMA CITY, OKLAHOMA – July 2, 2019. Flywheel Bakken, LLC, and certain wholly-owned subsidiaries (“Flywheel” or the “Company”), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Funds platform, announced that it has closed the previously announced sale of their Williston basin assets to Northern Oil & Gas, Inc. (the “buyer” or “NOG”) for a purchase price of $165 million in cash, a $130 million 6% 3-year senior unsecured note due 2022, and approximately 5.6 million shares of Northern common stock (as adjusted for customary purchase price adjustments).
The divested assets include non-operated working interests in approximately 18,000 net acres containing 87.8 net producing wells, and 4.1 net wells in process.
“The divestiture of our non-operated Williston basin asset will allow us to focus our resources on our core operated asset in the Fayetteville shale and continue to create value for our shareholders. We have enjoyed working with the Northern team on this transaction, and we wish them continued success with these great assets” commented Justin Cope, Chief Executive Officer of Flywheel.
Vinson & Elkins acted as legal advisor, and RBC Richardson Barr, LLC served as exclusive financial advisor to Flywheel Bakken.
ABOUT FLYWHEEL ENERGY
Flywheel Bakken began as Valorem Energy in early 2017 with backing from the Kayne Private Energy Income Fund. In 2017, Valorem acquired interests in the Williston Basin for $285 million. In August 2018, the platform committed a second time to the management team with $700 million of equity in the form of the newly-formed Flywheel Energy. Flywheel Energy is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Rockies and Mid-Continent. Flywheel entities have made over $2.1 billion of acquisitions since 2017. For more information please visit www.flywheelenergy.com
ABOUT KAYNE ANDERSON CAPITAL ADVISORS
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy and infrastructure, specialized real estate, growth equity and both private credit and diversified liquid credit. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages $30 billion in assets for institutional investors, family offices, high net worth and retail clients and employs 350+ professionals in eight offices across the U.S.
The Kayne Private Energy Income Funds platform is part of Kayne Anderson’s successful energy private equity practice that has raised over $10 billion since 1998. The strategy was formed in late 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.
Kayne Anderson is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta, and Boca Raton. For more information, please visit www.kaynecapital.com
FLYWHEEL ENERGY CLOSES ON ACQUISITION OF SOUTHWESTERN ENERGY COMPANY'S FAYETTEVILLE SHALE BUSINESS
OKLAHOMA CITY, OKLAHOMA – December 4, 2018. Flywheel Energy, LLC, and certain wholly-owned subsidiaries (“Flywheel” or the “Company”), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Funds platform, announced that it has closed on its acquisition of Southwestern Energy Company’s (“SWN”) Fayetteville Shale Business for a purchase price of $1.865 billion (as adjusted for customary purchase price adjustments).
The acquired assets include 716 mmcf/d of net production from 4,033 producing wells across over 900,000 net acres and an integrated midstream gathering system with over 2,000 miles of gathering pipelines and more than 50 compressor stations, all located in central Arkansas.
“Flywheel Energy is pleased to announce the closing of our second acquisition since the Company’s inception in 2017. I am proud of our team’s accomplishments and we are excited to join the remarkably talented team in the Fayetteville Shale,” commented Justin Cope, Chief Executive Officer of Flywheel. “We believe this is a great step forward as we work to deliver reliable, affordable and plentiful energy while generating attractive risk-adjusted returns for our investors.”
“We know that having a high-quality team which upholds the highest safety and environmental standards is critical to our company’s future success, and we are proud to join this team,” said Cope. “We look forward to being long-term, active members of the Arkansas community.”
Wells Fargo Bank, N.A, along with Citibank, N.A. provided an underwritten debt financing commitment to Flywheel. Wells Fargo Securities, LLC served as lead arranger and bookrunner and Citigroup Global Markets, BMO Capital Markets Corp., Capital One, National Association, Royal Bank of Canada and TD Securities (USA), LLC served as joint lead arrangers and bookrunners on the Company’s $1.425 billion credit facility. Wells Fargo Securities, LLC served as financial and technical advisor to Flywheel. In addition, Vinson & Elkins LLP provided legal counsel to Flywheel, Mobius Risk Group served as marketing and derivates advisor to Flywheel and Alvarez & Marsal North America, LLC performed transaction due diligence and integration services for Flywheel.
ABOUT FLYWHEEL ENERGY
Flywheel Energy began as Valorem Energy in early 2017 with backing from the Kayne Private Energy Income Fund. In 2017, Valorem acquired interests in the Williston Basin for $285 million, which the Flywheel organization continues to retain. In August 2018, the platform committed a second time to the management team with $700 million of equity in the form of the newly-formed Flywheel Energy. Flywheel Energy is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Rockies and Mid-Continent. With this acquisition, Flywheel entities will have made over $2.1 billion of acquisitions since 2017.
Contact:
Taylor MacEntire
Email:
Phone:
405-702-6654
Website:
ABOUT KAYNE ANDERSON CAPITAL ADVISORS
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy and infrastructure, specialized real estate, growth equity and both private credit and diversified liquid credit. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages $29 billion in assets (as of 10/31/2018) for institutional investors, family offices, high net worth and retail clients and employs 350+ professionals in eight offices across the U.S.
The Kayne Private Energy Income Funds platform is part of Kayne Anderson’s successful energy private equity practice that has raised over $8 billion since 1998. The strategy was formed in late 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.
Kayne Anderson is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta, and Boca Raton. For more information, please visit www.kaynecapital.com
KAYNE BACKS FLYWHEEL ENERGY TO ACQUIRE SOUTHWESTERN ENERGY COMPANY’S FAYETTEVILLE SHALE BUSINESS
$1.865 Billion Purchase of Southwestern Energy Company’s Integrated Fayetteville Shale Business Flywheel Energy, LLC Receives $700 Million Equity Commitment from Kayne
OKLAHOMA CITY, OKLAHOMA – September 4, 2018. Flywheel Energy, LLC (“Flywheel”), announced today the closing of an equity commitment of $700 million by the Kayne Private Energy Income Funds platform and members of Flywheel management. The commitment represents the platform’s second partnership with the Flywheel management team, following its original investment in 2017 (originally as Valorem Energy, LLC).
Concurrent with the new commitment, Flywheel has signed definitive agreements to acquire Southwestern Energy Company’s natural gas properties and affiliated midstream business in the Fayetteville Shale in Arkansas for $1.865 billion. The transaction is expected to close in the fourth quarter, subject to customary regulatory and other approvals.
The assets include 716 mmcf/d of net production from 4,033 producing wells across over 900,000 net acres and an integrated midstream gathering system with over 2,000 miles of gathering pipelines and more than 50 compressor stations, all located in central Arkansas.
“Flywheel Energy is proud to join the Arkansas community as an operator in the historic Fayetteville Shale,” commented Justin Cope, Chief Executive Officer of Flywheel. “We believe this is another great step as we work to execute our long term strategy and achieve superior risk-adjusted returns for our investors. The Fayetteville Shale has played a prominent role in the American shale revolution. We look forward to being a part of its next chapter and to providing affordable energy to the U.S. gas market for decades to come.”
“We are thrilled to be partnering with the Flywheel team once again to acquire these long-life natural gas assets in the Fayetteville Shale”, commented Danny Weingeist, Managing Partner of the Kayne Private Energy Income Funds. “Southwestern’s Fayetteville assets are an ideal fit for our Funds’ strategy, generating significant free cash flow through low-risk, legacy natural gas production.”
“We believe having a high quality team is critical to our company’s future success and we are honored to join an organization with an exceptional track record of safe and reliable operations,” said Cope. “We look forward to working with this experienced operations team to continue the Fayetteville legacy.”
Wells Fargo Bank, N.A, along with Citibank, N.A. provided an underwritten debt commitment for debt financing as part of the acquisition. Wells Fargo Securities, LLC served as financial and technical advisor to Flywheel. In addition, Vinson & Elkins LLP provided legal counsel to Flywheel, Mobius Risk Group served as marketing and derivates advisor to Flywheel and Alvarez & Marsal North America, LLC has been retained by Flywheel for transaction due diligence.
ABOUT FLYWHEEL ENERGY
Flywheel Energy began as Valorem Energy in early 2017 with backing from the Kayne Anderson Private Energy Income Fund. In 2017, Valorem acquired interests in the Williston Basin for $285 million, which the Flywheel organization continues to retain. In August 2018, the platform committed a second time to the management team with $700 million of equity in the form of the newly-formed Flywheel Energy. Flywheel Energy is a private exploration and production company formed to acquire and operate large, producing onshore U.S. oil and gas assets with an emphasis on the Rockies and Mid-Continent. With this acquisition, Flywheel entities will have made over $2.1 billion of acquisitions since 2017.
Contact:
Taylor MacEntire
Email:
Phone:
405-702-6654
Website:
ABOUT KAYNE ANDERSON CAPITAL ADVISORS
Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson” or the “Firm”), founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, and growth private equity. Kayne Anderson manages over $29 billion in assets (as of July 31, 2018) and employs more than 300 professionals in eight offices across the U.S.
The Kayne Private Energy Income Funds platform is part of Kayne Anderson’s successful energy private equity practice that has raised over $8 billion since 1998. The strategy was formed in late 2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.
The Firm is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta, and Boca Raton. For more information, please visit www.kaynecapital.com
VALOREM ENERGY, LLC CLOSES ON $285 MILLION ACQUISITION OF WILLISTON BASIN INTERESTS
OKLAHOMA CITY, OKLAHOMA – December 6, 2017. Valorem Energy, LLC, and certain wholly-owned subsidiaries, (“Valorem” or the “Company”), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Fund, L.P., announced that it has closed on its acquisition of LINN Energy, Inc.’s (“LINN” or the “Seller”) Williston Basin interests for a purchase price of $285 million, subject to customary purchase price adjustments.
The acquired assets consist of approximately 20,000 net acres in North Dakota, South Dakota and Montana with estimated third quarter net production of 8,750 barrels of oil equivalent per day. The sale has an effective date of March 1, 2017.
“We are excited to announce our first acquisition since forming Valorem earlier this year. I am very proud of the team’s accomplishments thus far, and we are thrilled to own such high-quality assets. We believe this acquisition provides us with an initial building block to our long-term strategy of operating large oil and gas assets and achieving superior returns for our investors,” commented Justin Cope, Chief Executive Officer of Valorem.
Danny Weingeist, Managing Partner at Kayne Anderson, said, “We are proud of the Valorem team and believe the assets are a great fit for both Valorem’s and the Fund’s strategies. We look forward to working with Valorem to deploy additional capital.”
JP Morgan Chase Bank, N.A., Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC acted as joint lead arrangers on Valorem’s debt financing for the acquisition. In addition, Vinson & Elkins L.P. provided legal counsel, Mobius Risk Group served as marketing and derivatives advisor and Opportune LLP provided due diligence and integration assistance to Valorem.
ABOUT VALOREM ENERGY, LLC
Founded in 2017, Valorem is a private exploration and production company formed to deploy over $1 billion of capital to acquire and operate large, producing onshore U.S. oil and gas assets, with an emphasis on the Rockies and Mid-Continent.
For more information, please visit www.valorem-energy.com.
ABOUT KAYNE ANDERSON CAPITAL ADVISORS
Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson” or the Firm”), founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy and infrastructure, specialized real estate, growth equity and both private credit and diversified liquid credit. Kayne Anderson manages approximately $25 billion in assets and employs over 300 professionals in eight offices across the U.S.
The Kayne Private Energy Income Fund, L.P. (the “Fund”) is part of Kayne Anderson’s successful energy private equity practice that has raised over $8 billion since 1998. The Fund was formed in mid-2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America. The Firm is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta and Boca Raton.
For more information, please visit www.kaynecapital.com.
VALOREM ENERGY, LLC RECEIVES $300 MILLION EQUITY COMMITMENT FROM KAYNE PRIVATE ENERGY INCOME FUND
OKLAHOMA CITY, OKLAHOMA – May 19, 2017 – Valorem Energy, LLC (“Valorem” or the “Company”), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma, is pleased to announce that the Company has received an initial $300 million equity commitment from the Kayne Private Energy Income Fund, L.P. (the “Fund”) and members of the management team.
Valorem is a private exploration and production company formed to deploy over $1 billion of capital to acquire and operate large, producing onshore U.S. oil and gas assets, with an emphasis on the Rockies and Mid-Continent. Valorem is led by CEO Justin Cope and COO Heath Mireles, former executives with Continental Resources. Justin most recently led Continental’s Mid-Continent operations as Vice President of Southern Production and previously led the business development function as a Vice President. Justin also worked in investment banking at Goldman Sachs and served as a Captain in the U.S. Army prior to joining Continental. Heath previously served as Vice President of Resource Development at Continental before co-founding Valorem. Prior to joining Continental, Heath began his career at BP where he served in various technical and operational roles throughout North America.
”We are very proud to partner with Kayne Anderson,” said Cope. “The Kayne Private Energy Income team is the ideal financial partner for our talented operational and technical team, and we value their financial and technical expertise as we execute our data and analytics driven strategy.”
Danny Weingeist, Managing Partner at Kayne, said, “Justin and Heath’s experience in operational and business development leadership roles will serve them very well in our effort to acquire and develop sizeable producing assets. We are very excited to be partnering with the Valorem team.”
ABOUT VALOREM ENERGY
Founded in 2017, Valorem is a privately held oil and natural gas exploration and production company based in Oklahoma City, OK. Valorem is focused on the acquisition and development of large producing oil and gas assets primarily in the Rockies and Mid-Continent regions. For more information, please visit www.valorem-energy.com.
ABOUT KAYNE ANDERSON CAPITAL ADVISORS
Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”), founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit and growth private equity. Kayne manages approximately $26 billion in assets and employs 300 professionals in nine offices across the U.S.
The Kayne Private Energy Income Fund is part of Kayne Anderson’s successful energy private equity practice that has raised over $8 billion since 1998. The Fund was formed in mid-2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.
The firm is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta, Portland and Boca Raton. For more information, please visit www.kaynecapital.com.