Legend Natural Gas
| Company type | Private |
|---|---|
| Industry | Oil and gas |
| Founded | 2001 |
| Founder | James A. Winne III, Michael Becci |
| Headquarters | Houston , United States |
Key people | James A. Winne III (President and CEO), Michael Becci (Vice President and CFO) |
| Products | Oil, natural gas |
Legend Natural Gas is a privately held oil and gas enterprise headquartered in the vicinity of Houston, Texas. Legend Production Holdings LLC specializes in the acquisition and development of enduring oil and natural gas assets within prolific Texas regions, such as South Texas, the Fort Worth Basin (Barnett Shale), and the Permian Basin.
Established in 2001 by James A. Winne III (serving as President and CEO) alongside Michael Becci (Vice President and CFO), Legend Natural Gas LP was the inaugural exploration and production company financed by Riverstone/Carlyle Global Energy and Power Funds. Initially, the partnership procured producing properties in South Texas before divesting certain assets to Chesapeake Energy in 2004. Following this, additional partnerships—Legend Natural Gas II, III, and IV—were created in 2004, 2006, and 2009 respectively. These entities continue operations today under the unified leadership of Legend Production. To date, Riverstone has committed nearly $1 billion toward upstream assets through these partnerships, representing its longest-standing portfolio company alliance.
Background
Formed through limited partnerships backed by private equity firms Riverstone Holdings, LLC and the Carlyle Group, Legend currently consists of three partnerships with approximately $450 million in equity contributions alongside $110 million in bank debt outstanding. As of December 31, 2010, Legend’s aggregate proved reserves were around 250 Bcfe, composed of roughly 60% natural gas and 40% oil, with net production near 65,000 Mcfe per day. The company generates operating cash flow close to $10 million each month. The management team brings over twenty years of expertise within South Texas and has overseen about $2.0 billion in oil and gas asset acquisitions and sales since 2000.
Legend Natural Gas III, LP ("LNG III") holds producing assets valued at $281 million with a daily output of 65 mmcfe. Legend Natural Gas IV, LP ("LNG IV") controls leasehold interests worth $25 million and benefits from a $400 million capital commitment provided by private equity backers. Both LNG III and LNG IV are strategically positioned to acquire oil and gas interests in Santa Fe Field, Brooks County, Texas; LNG III will acquire one-third while LNG IV will acquire two-thirds of Smith Production's stake. LNG III is designated as the operator for these assets.
Acquisition from Range Resources
The Barnett Shale properties obtained from Range encompass approximately 390 producing wells across about 52,000 net acres, with 80% located within the core Barnett Shale region. As of February 1, 2011, these assets delivered net daily production of 113 Mmcfe (86% natural gas). This transaction marked Legend’s initial entry into the horizontal Barnett Shale resource play, positioning it as the fifth largest producer in that area. Legend assumes operational control over these newly acquired properties.