Chillin' out till it needs to be funded
With Robert Kravis investing billions into shale, this time closer to his birth town in Tulsa OK, he may not follow his earlier penchant for selling off his shale, as the market for shale is not as promising after 40-50 deals in the space. We had earlier speculated that Kravis migh be developing this one as a value investing stream as JP Morgan led the $5.5 bln loan facility for the purchase
buys. His first , in the Marcellus shale (West Virginia to New York ) was a third purchase with Hockey billionaire and Buffalo Sabres owner Terrry Pagula (NYT). That $350 mln investment yielded $1.55 billion when Royal Dutch Shell bought over Terry’s company for $4.7 bln, at the very start of shale mania globally.
Shale is a horizontal digging technology as Gas is trapped in the upper layers and can be harnessed thru digging tunnels much nearer the surface thatn offshore and onshore oil well drilling
In another previous deal, KKR helped billionair shale gas explorer Hildebrand with a 40% stake worth $ 400mln, togehter selling the 100,000 acres Eagle Ford shale in South Texas to better known Marathon Oil for $3.5 bln, yielding KKR $1.4 bln or $1 bln in profit again.
Schusterman was also rumored to be Robert Kravis’ personal friend.