- Terra Energy Partners II has secured over $300 million of equity commitments from Kayne Private Energy Income Fund III and management team members. - The company will focus on acquiring and developing large, cash flowing oil and natural gas assets across the Lower 48 states. - Terra II is led by CEO BJ Reynolds and COO Wes Hobbs, who previously held leadership roles at Terra Energy Holdings. - Terra I, Terra II's predecessor, became one of the largest privately held natural gas producers in the U.S. - Terra I produced approximately 600 MMcfe/d of net production at its peak and drilled over 700 wells during its nine-year operation. - The initial investment of the Kayne Private Energy Income Funds strategy was in Terra I, which successfully exited earlier this year. - BJ Reynolds expressed excitement about renewing partnership with Kayne Anderson for Terra II. - Danny Weingeist highlighted the strong operational and commercial track record of the Terra team. - Terra II is focused on large, producing onshore oil and natural gas assets throughout the U.S. - Kayne Anderson is a leading alternative investment management firm founded in 1984, managing $38 billion in assets.

Terra Energy Partners II Announces Equity Commitment from Kayne Anderson

Jun 3, 2025 10:00 AM Eastern Daylight Time

HOUSTON--(BUSINESS WIRE)--Terra Energy Partners II, LLC (“Terra II” or the “Company”), a newly formed independent oil and natural gas company headquartered in Houston, Texas, today announced that it has secured over $300 million of equity commitments from Kayne Private Energy Income Fund III, L.P., a fund managed by Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”), and members of the Company’s management team.

Terra II will focus on the acquisition and development of large, cash flowing oil and natural gas assets with significant existing production throughout the Lower 48. The Company is led by Chief Executive Officer BJ Reynolds and Chief Operating Officer Wes Hobbs, who previously served in leadership roles at Terra Energy Holdings LLC (“Terra I”). Terra I, which operated in Colorado’s Piceance Basin, became one of the largest privately held natural gas producers in the U.S., producing approximately 600 MMcfe/d of net production at its peak. During Terra I’s nine-year tenure in the Piceance, the team drilled and completed more than 700 wells, vertically integrated its completion services via the purchase of Colorado’s first operator-owned electric frac fleet, and achieved a field-wide 80% reduction in methane intensity.

Terra II marks the second iteration of the Terra platform sponsored by Kayne Anderson, following the successful exit of Terra I earlier this year. Terra I was the inaugural investment of the Kayne Private Energy Income Funds strategy in 2016 and served as a foundational example of Kayne Anderson’s long-duration, cash flow-focused approach to upstream investing.

"We’re excited to renew our partnership with Kayne Anderson as we launch Terra II,” said BJ Reynolds, Chief Executive Officer of Terra II. “Building on the strong foundation and track record established with Terra I, we are confident in our ability to capture compelling opportunities in today’s market. With a proven team, disciplined strategy, and substantial equity backing, Terra II is well positioned to once again deliver outstanding results and long-term value for our shareholders.”

“Terra I was a defining investment for our Income Funds platform, and we’re proud to partner with this team again,” said Danny Weingeist, Managing Partner and Co-Head, Energy Private Equity at Kayne Anderson. “BJ, Wes, and the broader Terra team have an excellent operational and commercial track record, and we’re confident in their ability to drive value for our investors through Terra II.”

About Terra Energy Partners II

Terra II is a Houston-based, private oil and natural gas company focused on the acquisition and development of large, producing onshore oil and natural gas assets throughout the United States.

About Kayne Anderson

Kayne Anderson, founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure, and energy. With a team defined by an entrepreneurial and resilient culture, Kayne Anderson’s investment philosophy is to pursue cash flow-oriented niche strategies where knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne Anderson manages $38 billion in assets (as of 3/31/2025) for institutional investors, family offices, high net worth and retail clients and employs 350 professionals. For more information, please visit www.kayneanderson.com.



Contacts


Kayne Anderson
publicrelations@kayneanderson.com