OKLAHOMA CITY – October 31, 2022 — (BUSINESS WIRE)

Kayne Energy Private Equity (“Kayne Energy”) and 89 Energy III, LLC (“89 Energy”) are pleased to announce the formation of Land Run Minerals V, LLC (“LRM V”), a royalties acquisition and management strategy launched from the 89 Energy platform.

In conjunction with the formation of LRM V, Kayne Energy and 89 Energy are excited to announce LRM V’s initial acquisition of a unique, large-scale, mature royalties asset located in the core fairway of the Mid-Continent’s STACK play.

Asset Highlights:

• 4,500 Boe/d of net production

• 55,000 net royalty acres (normalized to 1/8th), primarily operated by Coterra Energy (CTRA), Devon Energy (DVN), Marathon Oil (MRO) and Ovintiv (OVV)

• 1,715 wells with an average net revenue interest of 1.6%

• 5 active rigs on the asset

• Assets mostly located in Kingfisher, Canadian and Blaine Counties, Oklahoma

“This initial acquisition leveraged our extensive experience and understanding of production and development activity in the Mid-Continent,” said John-Mark Beaver, Board Member of LRM V and President and CEO of 89 Energy. “In addition to the material production base, we acquired royalties in low breakeven development locations operated by large, public companies who are committed to active, long-term STACK development programs. Mid-Continent A&D markets are heavily discounting these factors, which is a dislocation we intend to exploit, as available. We are pleased to be of shared vision with Kayne Energy and appreciate their continued support.”

Ryan Sauer, Managing Director at Kayne Energy, said, “We are excited to add this mineral and royalty package to the Kayne Energy portfolio. This transaction represents a continuation of our successful relationship with the 89 Energy team and reflects our confidence in the team’s ability to identify and create value for our investors. This acquisition will serve as a cornerstone for future deals given the considerable amount of cash flow generated from the properties and inventory of high-quality development prospects.”

FINANCING AND ADVISORS

Equity financing was provided by new commitments from Kayne Energy Private Equity. Debt financing was provided by a new credit facility led by Wells Fargo Securities LLC and TCBI Securities, Inc., who acted as Joint Lead Arrangers and Bookrunners on syndication efforts. Wells Fargo Bank, N.A. will serve as Administrative Agent.

Baker Botts LLP and Porter Hedges LLP served as legal advisors to LRM V. McDermott Will & Emery served as legal advisor to Kayne Energy.

ABOUT LAND RUN MINERALS V, LLC

Land Run Minerals V, LLC is an Oklahoma City-based, private energy company focused on the acquisition and management of mature royalty assets. Land Run Minerals V was launched by the 89 Energy III team, who has a proven track record of operational success and sub-surface expertise as well as a successful history of leveraging its upstream expertise to build and manage mineral and royalty strategies. For more information, please visit www.landrunminerals.llc and www.eightynine.energy.

ABOUT KAYNE ENERGY PRIVATE EQUITY

Kayne Energy Private Equity is the energy private equity platform of Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”). Kayne Anderson, founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth 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. As responsible stewards of capital, Kayne Anderson’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne Anderson manages over $34 billion in assets (as of 6/30/2022) for institutional investors, family offices, high net worth and retail clients and employs over 325 professionals in five core offices across the U.S. For more information, please visit www.kaynecapital.com.

Contacts

Land Run Minerals V, LLC

landrun@eightynine.energy

Kayne Anderson Capital Advisors, L.P.

investorrelations@kaynecapital.com

April 19, 2021

Kayne Anderson Energy Funds Announces Merger of Anadarko Basin Portfolio Companies Under New Management, Closing of New Credit Facility and Additional Equity Funding

Kayne Anderson Energy Funds is pleased to announce the all-equity consolidation of Casillas Petroleum Resource Partners, LLC, Native Exploration Holdings, LLC and Acacia Exploration Partners, LLC to form 89 Energy Partners. Concurrent with the consolidation, 89 Energy Partners closed on a new syndicated credit facility and received additional equity contributions from energy private equity funds managed by Kayne Anderson.  Kayne’s energy private equity platform is also excited to announce a new partnership with the 89 Energy management team who will serve as new leadership for the business going forward.

89 Energy Partners successfully closed on a new, three-year credit facility with a majority of the existing lending syndicates of the predecessor companies and Wells Fargo Bank acting as sole Administrative Agent. Wells Fargo Securities, LLC served as Left Lead Arranger on the syndication of the credit facility.

This transaction further strengthens the financial and operating position of 89 Energy Partners allowing it to realize day-one structural cost reductions, leverage scale for additional savings opportunities and to pursue the prudent and efficient development of its high-quality drilling inventory. 89 Energy Partners’ operating footprint consists of approximately 80,000 net acres predominantly located in SCOOP, with approximately 21,000 net boe/d of production.  Additionally, 89 Energy Partners will manage the assets of Triumph Energy Partners, LLC (“Triumph”), which consists of approximately 15,000 net acres in STACK with approximately 6,500 net boe/d of production.

89 Energy Partners is headquartered in Oklahoma City, Oklahoma and led by a team that has been operating in the Anadarko Basin since 2016, demonstrating a proven track record of operational success and sub-surface expertise. Prior to 2016, the 89 Energy management team spent years in growth and development projects in the Anadarko Basin with previous employers. 

John-Mark Beaver, President and CEO at 89 Energy Partners, said, “We are pleased to announce the partnership with Kayne’s energy platform along with this transformative transaction that provides scale and strong financial footing for a one-of-a-kind, highly economic Mid-Continent asset.  89 Energy Partners is well positioned to evolve with the changing energy landscape and to thoughtfully develop our assets and pursue strategic, scalable opportunities.”

Ryan Sauer, Managing Director at Kayne Anderson Energy Funds, said, “We are excited about  partnering with a talented 89 Energy management team and will look to create substantial value in our current Mid-Continent asset through both the continued exploitation of the existing inventory and further consolidation within the Anadarko Basin.”

ABOUT 89 Energy

89 Energy is an Oklahoma City-based, private energy company focused on the acquisition and development of oil and gas assets throughout the Anadarko Basin.  To learn more, please visit 89energy.partners.

ABOUT Kayne Anderson Capital Advisors, L.P.

Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth 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. As responsible stewards of capital, Kayne Anderson’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne Anderson manages over $30 billion in assets (as of 12/31/2020) for institutional investors, family offices, high net worth and retail clients and employs over 350 professionals in five core offices across the U.S. For more information, please visit www.kaynecapital.com.

CONTACT INFORMATION

89 Energy Partners, LLC

(405) 600-6040

info@89energy.partners

Please direct matters relating to Triumph to triumph@89energy.partners