Grenadier Energy III Announces Commitment From EnCap Investments To Target Acquisitions In The Lower 48

THE WOODLANDS, TEXAS, July 21, 2021 /PRNewswire/ -- Grenadier Energy III, LLC ("Grenadier") today announced the closing of an initial $350 million equity commitment in June 2021 from EnCap Investments L.P. ("EnCap"), a leading provider of growth capital to the independent sector of the U.S. energy industry.

Grenadier, led by Chief Executive Officer Patrick J. Noyes, is an upstream exploration and production company focused on acquiring, developing and exploiting assets to create significant enterprise value and return that value to its stakeholders.

Grenadier has successfully employed this strategy through multiple iterations, most recently with Grenadier Energy Partners II, LLC, which sold assets in the Midland Basin to Surge Energy US Holdings Company for $420 million USD in March 2021. The divested assets included more than 18,000 net acres and ~9,000 Boepd from a successful horizontal development program in the Wolfcamp and Spraberry formations.

"The Grenadier team has a proven track record of acquiring high quality assets and developing them effectively to build attractive businesses of scale," stated Patrick Noyes, CEO of Grenadier, "We are excited to again partner with EnCap as we embark on this next adventure together and continue the success this company has shown over the past 14 years. I am extremely confident in the ability of our staff to utilize our experience and leverage new technology to capture the next profitable venture as we navigate the energy transition."

"We are excited to continue our longstanding partnership with Pat Noyes and Grenadier," said EnCap Managing Partner Doug Swanson, "This newest equity commitment is a testament to our confidence in the entire Grenadier team and their strategy."

Additionally, Grenadier today announced the promotion of Kyle Noyes to President and Chief Operating Officer, Lenny Lilja to Chief Financial Officer and Thomas Belsha to Chief Technical Officer – Business Development & Engineering.

Vinson & Elkins LLP served as legal counsel to EnCap and Akin Gump Strauss Hauer & Feld LLP to Grenadier on the formation of the new company.

About Grenadier
Grenadier Energy Partners, LLC was originally formed in 2007 by Patrick J. Noyes as an upstream exploration and production company in the energy sector. In December 2012, Grenadier I sold its assets in the Marcellus Shale to Statoil USA Onshore Properties Inc. and started Grenadier II. In 2021, the team once again executed a successful sale of its assets in the Midland Basin to Surge Energy US Holdings Company. Grenadier Energy III, LLC is the current operating company and is a wholly owned subsidiary of Grenadier Energy Partners III, LLC.

Grenadier's strategy is to profitably develop long-lived oil and natural gas reserves by applying cutting edge technology through the drilling, completion and production phases of its wells. The Company maintains a disciplined, opportunistic approach to acquisitions where it seeks to find long-life reserves that can be developed with low risk and moderate capital requirements. For more information, please visit gepllc.com.

About EnCap Investments L.P.
Since 1988, EnCap Investments has been the leading provider of growth capital to the independent sector of the U.S. energy industry. The firm has raised 22 institutional investment funds totaling approximately $38 billion and currently manages capital on behalf of more than 350 U.S. and international investors. For more information, please visit www.encapinvestments.com.

Contact:
Thomas Belsha
Chief Technical Officer - Business Development & Engineering

SOURCE Grenadier Energy III, LLC