Home Banking & Finance Stamford’s First Reserve selling Deep Gulf Energy for $1.2 billion

Stamford’s First Reserve selling Deep Gulf Energy for $1.2 billion

Stamford-based private equity firm First Reserve is selling Deep Gulf Energy, a deepwater oil and gas exploration and development business operating in the Gulf of Mexico, to Kosmos Energy for $1.225 billion.

First Reserve has funded Houston’s Deep Gulf Energy from its inception in 2005. “The Deep Gulf Energy platform is a strong example of First Reserve’s thematic approach to investments throughout the energy value chain, and we look forward to seeing continued impressive performance from the Deep Gulf Energy team,” remarked First Reserve Managing Director Neil Wizel.

Andrew Inglis, chairman and CEO of Dallas-based Kosmos Energy, said that Deep Gulf gives his company more diversification, exploration opportunities and a pipeline of quality development projects in the Gulf. Kosmos has doubled its oil and gas production in the last four years, and this deal should allow the company to double it again in the next four years, he said.

Barclays acted as an adviser for First Reserve and Deep Gulf Energy. Lazard Freres & Co. LLC and Moelis & Co. provided fairness opinions to the special committees of the Deep Gulf Energy vehicles in the transaction. Gibson, Dunn & Crutcher LLP and Vinson & Elkins LLP provided legal advice.

The transaction is expected to close around the end of the third quarter, pending regulatory approval and the satisfaction of customary closing conditions.


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