Venado Oil & Gas and KKR Acquire Cabot Eagle Ford Assets

AUSTIN, Texas & HOUSTON–(BUSINESS WIRE)–Venado Oil and Gas, LLC (“Venado”) and KKR today announced that they
have closed on the acquisition of the operated and non-operated Eagle
Ford assets of Cabot Oil & Gas Corporation (NYSE: COG) for a purchase
price of $765 million, subject to customary closing adjustments. Venado
and KKR acquired interests which include approximately 303 gross/203 net
wells and 74,400 net acres situated primarily in the Eagle Ford oil
window of South Texas (Atascosa, Frio, and LaSalle counties). During the
fourth quarter of 2017, the assets produced 15,656 net barrels of oil
equivalent per day (85% oil, 5% natural gas and 10% NGLs).

Venado CEO Scott Garrick stated, “The Cabot acquisition is a
high-quality asset positioned in the oil fairway of the Eagle Ford. The
combination of a strong production base and an attractive inventory of
future drilling locations fit well with our disciplined business model
of operating with free cash flow while supporting long term growth. We
look forward to implementing our leading edge drilling and completion
designs in one of the best producing basins in the country.”

David Rockecharlie, Member and Head of Energy Real Assets for KKR,
commented, “We are excited to continue to build a first-in-class Eagle
Ford asset position alongside Scott and his team. We continue to see an
attractive market opportunity throughout the Eagle Ford trend and
believe we are well positioned for future growth and long-term value
creation through strong operational execution.”

As of the closing date, the Venado and KKR partnership will hold
interests in 112,000 net acres, producing over 43,000 barrels of oil
equivalent per day from the Eagle Ford trend of South Texas. Garrick
added, “I am very pleased about what the Venado and KKR partnership has
been able to accomplish in a short period of time. We will continue to
execute on our Eagle Ford pure-play strategy to consolidate premier
liquids-rich assets.”

The Venado partnership is principally funded by KKR’s Energy Income and
Growth Fund I (“EIGF”). EIGF manages a portfolio of oil and gas assets
in numerous unconventional and conventional resource areas across the
United States. KKR has made more than ten investments in the Eagle Ford
to date.

About Venado Oil and Gas

Venado Oil & Gas is a private company focused on the acquisition and
exploitation of upstream oil and gas assets. Headquartered in Austin,
Texas, its primary objective is to build and operate a portfolio of
producing oil and gas wells and drilling locations in the Eagle Ford
Shale. For additional information about Venado Oil & Gas, please visit www.vogllc.com.

About KKR

KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR’s investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website
at www.kkr.com
and on Twitter @KKR_Co.

Contacts

Media:
KKR
Kristi Huller or Cara Kleiman Major,
+1-212-750-8300
[email protected]