Kelso Fund IX Exits Investment in Ajax Resources
November 6, 2018
Kelso is pleased to announce that on October 31, 2018, Ajax Resources closed the sale of substantially all of its assets to Diamondback Energy. Ajax is an exploration and production company focusing on oil and gas development in the Permian Basin. The Company was formed in 2015 specifically to acquire certain Permian assets from W&T Offshore. Ajax operates across ~25,500 acres in Martin, Andrews, Dawson, and Gaines counties in the Northern Midland Basin.
Kelso, in conjunction with KSN member Forrest Wylie, developed a partnership solution for a motivated seller that resulted in an attractive valuation in a depressed oil price environment. Since Kelso’s initial investment in October 2015, the team successfully realized numerous key elements of our operationally-focused investment thesis – validation of core geology across the acreage position, delineation of “stacked pay” potential and improved drilling and completion efficiencies – all of which culminated in a transaction to sell the business to a best-in-class Permian Basin operator at a premium multiple. Kelso and the Ajax management team expect to continue to pursue new acquisition opportunities together following the closing of the transaction.