Parallel Resource Partners: A Unique Investment Model in the North American Upstream Oil and Gas Sector

Located at 300 Crescent Ct 1860, Dallas, TX 75201, US, Parallel Resource Partners, LLC is a private equity firm that specializes in the North American upstream oil and gas sector. With its unique investment model, the company focuses on providing growth capital to established oil and gas companies with attractive drilling opportunities. Unlike most energy private equity firms, Parallel Resource Partners typically does not back greenfield management teams without assets. Instead, they take significant equity positions in established oil and gas companies and work side-by-side with the founders.

The members of Parallel's investment team have a long history of acquiring and unlocking value in attractive energy assets that have not been fully exploited. The company believes that the current market conditions have created three attractive investment strategies: Development Capital, Debt Reduction, and Out-of-Favor Assets.

Development Capital is a strategy that focuses on providing capital to companies with attractive investment opportunities that cannot raise sufficient external capital. In some cases, this involves expiring options, such as expiring leases or non-consent wells. In other cases, it involves stranded development in which attractive investment opportunities go unfunded. Parallel Resource Partners provides development capital directly to companies or joint-ventures and to others as financing partnerships.

Debt Reduction is another investment strategy employed by Parallel Resource Partners. This strategy involves providing capital to remedy debt-related deficiencies, whether due to maturities, downward borrowing base redeterminations, covenant breaches, or insolvency/bankruptcy.

Finally, Out-of-Favor Assets is an investment strategy that involves contrarian investments in which companies and investors have largely turned away from out-of-favor asset classes. In recent times, these have included shallow offshore developments in the Gulf of Mexico, investments in conventional onshore oil and gas, and investments in difficult regulatory environments such as California.

With their strategic approach to investing in the oil and gas sector, Parallel Resource Partners has carved out a unique niche for themselves in the industry. By focusing on development capital, debt reduction, and out-of-favor assets, they are able to provide growth capital to established oil and gas companies with attractive drilling opportunities. This unique investment model sets Parallel Resource Partners apart from other energy private equity firms and has positioned them as a leading player in the North American upstream oil and gas sector. For more information about Parallel Resource Partners and their investment strategies, visit their website at http://www.parallelresourcepartners.com/.