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KKR Teams Up With Chesapeake to Invest $250 Million
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KKR & Co. and Chesapeake Energy Corp., the second-largest U.S. natural-gas producer, formed a $250 million partnership to buy mineral rights and royalties from owners of oil and gas properties.
KKR, the private equity firm run by Henry Kravis and George Roberts, will commit an initial $225 million and Chesapeake will provide $25 million toward the partnership, which will invest in mineral and royalty interests in oil and gas basins, the firms said in a statement today. Owners of oil and gas royalties typically receive a share of production revenue without incurring any of the production cost. In the U.S., owners of mineral rights to a specific piece of property usually negotiate for royalty payments.
A natural gas drilling rig stands on a Chesapeake Energy Corp. drill site in Bradford…
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