Top Story | Private Equity | Capital Markets
Kayne Anderson Backs Terra Energy Partners II with $300M to Pursue Large U.S. Energy Assets
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Buyer Leadership:
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CEO: BJ Reynolds
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COO: Wes Hobbs
Assets / Strategy:
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Acquisition and development of large, cash-flowing oil & gas assets
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Targeting existing production
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Leverage experience from Terra I's Piceance Basin success
Notable Track Record:
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Over 700 wells drilled in the Piceance Basin
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First operator-owned electric frac fleet in Colorado
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80% reduction in methane intensity under Terra I
Terra Energy Partners II has launched with more than $300 million in equity commitments from Kayne Anderson’s Private Energy Income Fund III and the Terra management team. The new Houston-based venture, led by Terra I veterans BJ Reynolds and Wes Hobbs, will focus on acquiring and optimizing large-scale producing oil and gas assets across the Lower 48.
This marks the second collaboration between Kayne Anderson and the Terra team, following the success of Terra I, which became one of the largest private natural gas producers in the U.S. during its tenure in Colorado’s Piceance Basin. Reynolds emphasized that Terra II is “well positioned to once again deliver outstanding results,” while Kayne’s Danny Weingeist called Terra I a “defining investment” and expressed strong confidence in the team’s ability to deliver value again.
With a proven operational team, disciplined acquisition strategy, and a long-term investment approach, Terra II is positioned to be a major player in the next wave of upstream consolidation and value-focused development.