Pegasus Resources Secures Additional $300 Million Equity Commitment from EnCap Investments

FORT WORTH, Texas–(BUSINESS WIRE)–Pegasus
Resources, LLC
(Pegasus), a mineral and royalty company based in
Fort Worth, Texas, announced today that it has secured an additional
$300 million equity commitment from EnCap
Investments L.P.
(EnCap), bringing EnCap’s total commitment to $600
million. Pegasus received an initial commitment of $300 million from
EnCap in November 2017. The company is focused on the acquisition and
management of mineral and royalty properties in the core of the Delaware
and Midland Basins.

“Our goal at Pegasus has always been to create long-term value by
building a portfolio of mineral and royalty interests with sustainable,
multi-generational growth potential,” said Pegasus Chief Executive
Officer George M. Young Jr. “EnCap has been an outstanding equity
partner from the beginning and this additional capital allows us to
continue to source best-in-class opportunities, under the premier
operators, in the most prolific oil and gas basin in the world.”

“This second infusion of equity is a testament to our confidence in the
Pegasus team and their overall development strategy,” said EnCap
Co-Founder and Managing Partner David Miller. “We look forward to
continuing our successful partnership and being part of the Pegasus
growth story.”

Since 2017, Pegasus has assembled a team representing decades of
experience in land, geology, and engineering, and has expanded its
accounting and finance capabilities to manage its rapidly growing
portfolio of producing properties. This multidisciplinary team allows
Pegasus to develop broad basin studies, understand the unique geology
and well economics in specific areas of interest, and properly manage
its assets. Additionally, Pegasus continues its partnership with Tilden
Capital, LLC
. Tilden has a long track record of successfully
sourcing and closing mineral and royalty acquisitions across various
basins, and specifically the Permian Basin.

“We are pleased with the significant deal flow we continue to see and
are confident in the mineral and royalty space as a whole,” said Mr.
Young. “Our team has the capability to stay up-to-date on broad trends
in the Permian Basin, which allows us to identify areas with solid well
performance and the best potential for long-term upside.”

The Pegasus management team has worked together successfully in various
ventures for over a decade. Pegasus is led by Chief Executive Officer
George M. Young Jr., President and Chief Operating Officer Will O.
Rodgers, and Chief Financial Officer Lynn Frank.

About Pegasus Resources, LLC

Pegasus Resources is a mineral and royalty company based in Fort Worth,
Texas, focused on the acquisition and management of properties primarily
located in the Permian Basin. Pegasus is financially backed by a $600
million equity commitment from EnCap Investments L.P. For more
information on Pegasus, please visit www.pegasusresources.com.

About EnCap Investments L.P.

Since 1988, EnCap Investments has been the leading provider of venture
capital to the independent sector of the U.S. oil and gas industry. The
firm has raised 21 institutional oil and gas investment funds totaling
approximately $37 billion and currently manages capital on behalf of
more than 350 U.S. and international investors. For more information,
please visit www.encapinvestments.com.

Contacts

Meredith Hargrove Howard
M2H Communications
210-737-4478
[email protected]