New York private equity firm CCMP Capital Advisors has agreed to invest $345m in Chaparral Energy Inc, an oil and gas production and exploitation company, for a “significant ownership stake” reported to be 37 per cent.
Since its inception in 1988, Oklahoma-based Chaparral has increased reserves and production by acquiring and enhancing properties. Beginning in 2000, the company expanded its geographic focus to include Ark-La-Tex, North Texas, the Gulf Coast and the Rocky Mountains. Its main geographic areas of focus are the US Midwest and the Permian Basin in Texas.
Mark Fischer, chairman and CEO of Chaparral, said, “With its extensive experience investing in leading energy companies, we believe CCMP is the ideal partner to take us to the next level. CCMP’s exceptional operating resources will allow us to sustain our growth through a balanced programme of acquisitions, exploitation, development and exploration.”
CCMP’s past investments in the energy sector include Bear Paw Energy, Bill Barrett Corporation, Brand Energy and Infrastructure Services, Carrizo Oil and Gas, Encore Acquisition Company, Latigo Petroleum, Patina Oil and Gas, and Vetco International.
Earlier this month, the private equity firm, which has put $12bn to work since its inception in 1984, said it had agreed to buy public data and marketing services business Infogroup Inc for approximately $460m.
Immediately following the deal announcement, law firms Robbins Umeda, Brodsky & Smith and Kendall Law Group all said they were launching investigations into the sale agreement. The inquiries intend to determine whether Infogroup’s acceptance and recommendation of CCMP’s offer was above board.
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