KKR seals $306m oil and gas deal

KKR Natural Resources' latest deal brings its total capital deployed since 2010 past $900m, and leaves it with about $1.1bn of available capital remaining for new investments.

Kohlberg Kravis Roberts has agreed to purchase a number of oil and gas properties in Texas and Oklahoma for $306 million.

Natural gas and oil producer WPX Energy is selling the assets, which are located in the Barnett Shale and Arkoma Basin regions. The transaction is being made by KKR Natural Resources, the partnership between KKR and Premier Natural Resources that has acquired more than $900 million of assets since 2010. The oil and gas fund still has about $1.1 billion to invest, according to documents filed with the US Securities and Exchange Commission.

“We see attractive opportunities to invest behind the development of domestic energy resources and remain excited about the opportunity to grow our natural resources platform by continuing to acquire non-core oil and gas properties,” head of KKR Natural Resources Jonathan Smidt said in a statement.

The firm was unavailable for comment at press time. The transaction, KKR's third in the Barnett Shale region, is expected to close during the second quarter of 2012.

KKR Natural Resources, an oil and gas fund within the firm’s broader energy group, has been an active investor in producing properties that are non-core to their owners. Part of the division’s investment thesis follows a shift in market interest from conventional to unconventional oil and natural gas assets, according to KKR’s website.

The team pursues investments in North American oil and gas properties and has previously invested in Oklahoma-based exploration and production company Samson Resources and Texas-based El Paso Corporation’s midstream infrastructure assets.