Lime Rock Partners Company Profile

Background

Founded in 1998, Lime Rock Partners is a private equity firm specializing in the upstream oil and gas sector. With over $10.4 billion in private capital commitments, the firm focuses on investing in exploration and production (E&P) and oilfield service companies worldwide. Lime Rock Partners emphasizes patient capital and operational collaboration to enhance reserves, production, and profit margins for its portfolio companies.

Key Strategic Focus

Lime Rock Partners targets investments in specialized E&P and oilfield service companies, aiming to build high-growth businesses through strategic partnerships. The firm seeks to invest between $50 million to $150 million in niche specialist companies to fund their growth. Their investment strategy includes:

• Lease & Drill: Partnering with companies focused on leasing and drilling operations.

• Acquire & Exploit: Investing in companies that acquire and optimize existing oil and gas assets.

• Manufacturers: Supporting manufacturers of oilfield equipment and technologies.

• Contract Drillers: Backing contract drilling companies with specialized capabilities.

• Specialty Services: Investing in companies offering specialized oilfield services.

• Diversified: Engaging with companies that have diversified operations within the energy sector.

The firm emphasizes partnering with proven entrepreneurs who have a track record of exceeding goals and adapting to changing markets. Lime Rock Partners seeks differentiated companies capable of growing faster than the industry average, leveraging technological advancements and strategic agility.

Financials and Funding

Since its inception, Lime Rock Partners has raised over $10.4 billion in private capital commitments. Notable funding milestones include:

• Lime Rock Partners IV AF Acquisition Fund (2018): Closed at $1.9 billion, acquiring remaining assets from Lime Rock Partners IV, L.P., with a significant focus on CrownRock LP, a major oil and gas producer in the Permian Basin.

• Lime Rock Partners VI AF Acquisition Fund (2021): Closed at $203 million, acquiring assets from Lime Rock Partners VI, L.P., with Goldman Sachs Asset Management Vintage Funds serving as the lead investor.

These funds aim to benefit from further value appreciation in their respective assets, reflecting Lime Rock Partners' commitment to long-term investment strategies.

Pipeline Development

Lime Rock Partners has a history of investing in and developing key pipeline projects, including:

• CrownRock LP: Formed in 2007, CrownRock has become one of the most active private drillers in the United States, holding over 90,000 operated acres in the Midland Basin and achieving production exceeding 40,000 barrels of oil equivalent per day.

• Capstone Natural Resources: In 2012, Lime Rock Partners committed $100 million to Capstone, focusing on oil opportunities in the Central Basin Platform of West Texas and Eastern New Mexico.

These investments demonstrate Lime Rock Partners' focus on developing high-potential assets in strategic locations.

Technological Platform and Innovation

Lime Rock Partners differentiates itself through a commitment to technological innovation in the oil and gas sector. The firm actively integrates advancements in oilfield services to provide its portfolio companies with a competitive edge. Notable technological initiatives include:

• EV: A downhole video technology leader, Lime Rock Partners worked closely with EV as it commercialized its technology worldwide.

• Shelf Drilling: Collaborated in a carve-out transaction to form a leading international shallow water driller.

These initiatives underscore the firm's dedication to leveraging technology to enhance operational efficiency and value creation.

Leadership Team

Lime Rock Partners is led by a team of experienced professionals:

• John Reynolds: Co-Founder & Managing Director, with extensive experience in private equity investments in the energy sector.

• Jonathan Farber: Co-Founder & Managing Director, specializing in growth capital investments in E&P and oilfield service companies.

• Jeffrey Scofield: Managing Director & Chief Operating Officer, overseeing the firm's operational strategies.

• Anu Mehta, JD: Managing Director & General Counsel, responsible for legal affairs and compliance.

• Susan Oswald: Chief Financial Officer & Controller, managing financial operations and reporting.

This leadership team brings a wealth of experience and expertise, guiding the firm's strategic direction and investment decisions.

Leadership Changes

As of the latest available information, there have been no recent significant changes or appointments within Lime Rock Partners' leadership team.

Competitor Profile

Market Insights and Dynamics

The private equity landscape in the upstream oil and gas sector is characterized by significant capital commitments and a focus on technological innovation. The market is competitive, with firms seeking to invest in high-growth companies that can adapt to changing energy dynamics and technological advancements.

Competitor Analysis

Key competitors in the sector include:

• NGEN Partners: Focuses on investments in energy and resource efficiency sectors.

• Electranova Capital: Invests in innovative energy technologies and services.

• I2BF Global Ventures: Specializes in clean technology and renewable energy investments.

These firms, while operating in overlapping sectors, may differ in their investment strategies and areas of focus compared to Lime Rock Partners.

Strategic Collaborations and Partnerships

Lime Rock Partners has established significant collaborations to strengthen its market position:

• CrownQuest Operating: Since 2007, partnered to form CrownRock LP, a leading oil and gas producer in the Permian Basin.

• Capstone Natural Resources: In 2012, committed $100 million to support Capstone's growth in the Permian Basin.

These partnerships reflect Lime Rock Partners' commitment to working closely with management teams to drive value creation.

Operational Insights

Lime Rock Partners' strategic considerations include:

• Selective Investment Approach: Partnering with a small number of new companies each year to provide focused resources and support.

• People-Centered Strategies: Emphasizing the quality of entrepreneurs and management teams to drive success.

• Global Presence: Leveraging a global team and portfolio to bring local expertise and a broad perspective to investments.

These strategies position Lime Rock Partners to effectively navigate the competitive landscape and capitalize on growth opportunities.

Strategic Opportunities and Future Directions

Looking ahead, Lime Rock Partners aims to:

• Expand Technological Investments: Continue integrating innovative technologies to enhance portfolio company performance.

• Strengthen Market Position: Leverage existing partnerships and seek new collaborations to solidify its presence in key markets.

• Adapt to Energy Transition: Explore opportunities in energy transition technologies and services to align with evolving industry trends.

By building on its current strengths and strategic focus, Lime Rock Partners is well-positioned to achieve its future objectives.

Contact Information

• Website: www.lrpartners.com

• LinkedIn: Lime Rock Partners LinkedIn

For further inquiries, please visit the official website or LinkedIn page.