Sheridan Production Partners has raised $1.5 billion in equity commitments through its third fund, Sheridan Production Partners III, to acquire onshore U.S. producing oil and gas properties.

Including the latest offering, Sheridan has raised a total of approximately $4.6 billion in equity commitments through private placements of three series of investment vehicles since the company’s formation in 2006. The Sheridan Fund III investors include long-time Sheridan Limited Partners as well as new investors making their first commitment to Sheridan.

Sheridan founder and Chairman Lisa Stewart commented: "We are excited to be in the acquisition market with a $1.5 billion equity war chest at this particular time. Declining petroleum prices create opportunities for Sheridan as companies seeking to pay down debt sell mature properties with predictable production that fit our successful business strategy: optimizing assets through operational improvements and cost savings, hedging the production for several years and enhancing returns through prudent leverage.” Stewart added, “We view the strong support of our investors in this very successful fundraise as an important re-affirmation of our strategy."

Stewart said Sheridan will continue to focus on transactions in the Mid-Continent area, primarily in Oklahoma, Texas, New Mexico and Wyoming, that complement the company’s existing assets. “We have a proven track record of closing transactions expeditiously, even during periods of turbulent commodity prices and limited capital markets access,” Stewart said.

Sheridan Production Partners III is under common management with Sheridan’s previous two funds and has a similar investment strategy. The earlier oil and gas partnerships have closed eight acquisitions for an aggregate purchase price of $5.2 billion, employing a combination of equity commitments and debt financing.