Warburg leads $1bn oil investment

Warburg Pincus, Yorktown Energy Partners and Lehman Brothers have invested $1 billion in oil company Antero Resources.

A Warburg Pincus-led group of investors including Yorktown Energy Partners and Lehman Brothers Merchant Banking Group has made a $1 billion (€746 million) investment in Denver-based oil and gas exploration and production group Antero Resources.

This is the second time the group has invested in Antero; in 2003, shortly after the company was founded by Paul Rady and Glen Warren, the same group provided $260 million for the company’s initial financing.

Antero used the first round of investment to develop its operations on the Barnett Shale in Texas, where the company eventually became the region’s second largest producer. In 2005 XTO Energy bought the company’s assets there for more than $1 billion in cash and stock.

Antero is currently developing properties in the Oklahoma’s Arkoma Basin and Colorado’s Piceance Basin.

Warburg Pincus has invested in all areas of the energy sector, including companies that focus on biodiesel, petrochemicals, coal, oil and gas. This year it acquired three gas fired electricity generation plants from Dominion Electric for an undisclosed amount, and invested $175 million in Hong Kong-listed Titan Petrochemicals.

Warburg Pincus also co-founded Sheridan Production Partners, a firm that acquires mature oil and gas companies, along with oil industry veteran Lisa Stewart. The firm closed its debut fund this month on $1.3 billion.