Blackstone Group LP is partnering with two oil and gas companies as it targets assets in the sought-after Permian shale formation.
Jetta Permian, formed with Jetta Operating Company Inc., plans to acquire leaseholds in the Permian’s Delaware Basin in West Texas and southern New Mexico, New York-based Blackstone said in a statement Thursday. The partnership has $1 billion of capital committed.
Blackstone has also designated $500 million in a partnership with Guidon Energy to acquire assets in the Permian’s Midland Basin “with the potential to commit significantly more with future acquisitions.” Guidon purchased about 16,000 net acres in Martin County, Texas, in April.
The partnerships underscore the industry’s interest in one of the few regions where drilling remains profitable at current prices. The Permian has dominated acreage deals among independent drillers this year. PDC Energy Inc. bought into the Permian with a $1.5 billion acquisition announced this week. Meanwhile Parsley Energy Inc. and Concho Resources Inc. also added holdings in the play this month.
Crude prices have rebounded to above $47 a barrel since dropping near $26 in February. Private equity firms have stepped into the market to pick up assets that have lost value since oil plunged from above $100 a barrel in the middle of 2014.