Silver Hill Expands South Texas Footprint with Acquisition of 1776 Energy Assets

Silver Hill Energy Partners has acquired 100 percent of 1776 Energy’s South Texas oil and gas assets, significantly expanding its operated footprint across the Eagle Ford and Austin Chalk in Karnes and Gonzales Counties.

The transaction returns Silver Hill to South Texas following its 2023 exit from Webb County and re-establishes a scaled, development-ready platform in one of the most mature and infrastructure-rich shale basins in North America.

The acquired position includes a meaningful inventory of undrilled locations across stacked horizons, providing Silver Hill with long-duration, repeatable development opportunities in liquids-rich acreage.

Management indicated the assets align with the firm’s disciplined capital model and offer substantial low-risk drilling inventory capable of generating attractive rates of return under a moderate commodity price environment.

Transaction Summary

Buyer: Silver Hill Energy Partners, LP
Seller: 1776 Energy (backed by Quantum Capital Group)
Basin: Eagle Ford Shale / Austin Chalk
Location: Karnes County and Gonzales County, Texas
Net Acreage: ~17,500 acres
Gross Drilling Locations: ~550
Operatorship: Operated position
Consideration: Not disclosed
Funding: Equity commitments from Silver Hill Energy Partners IV and affiliated vehicles; reserve-based credit facility

Advisors:
• Evercore (financial advisor to Silver Hill)
• Willkie Farr & Gallagher LLP (legal to Silver Hill)
• Haynes and Boone LLP (legal to 1776 Energy)

Strategic Rationale

Re-Entry into South Texas

The acquisition marks Silver Hill’s return to South Texas after divesting prior positions in 2023. The company now controls a sizable, contiguous operated position in core Eagle Ford fairway acreage with stacked Austin Chalk potential.

Inventory-Driven Growth

The approximately 550 gross drilling locations provide multi-year visibility on capital deployment and production growth. The inventory depth supports a measured development cadence while preserving capital efficiency.

Institutional Capital Rotation

For 1776 Energy and its private equity sponsor, the sale represents portfolio monetization after more than a decade of asset stewardship and development. The transaction reflects ongoing capital rotation within private equity-backed upstream portfolios as sponsors rebalance exposure across basins and commodity mixes.

Basin Context

The Eagle Ford continues to attract consolidation capital due to:

• Established infrastructure
• Predictable well performance
• Shallow decline relative to newer shale plays
• Strong service market depth

In a capital-constrained upstream environment, scaled operated positions with visible inventory remain highly competitive assets.

 

 

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