Oil & Gas Financing

Exploration and production company develops Midland basin acreage

Big Star Oil & Gas, LLC is a privately owned exploration and production company headquartered in Midland, Texas. Big Star Oil & Gas had historically utilized industry partners and regional banks for the development of its acreage positions. However, the company sought a different financial strategy for its next venture, one which prevented equity dilution and advanced the pace of drilling.

Prudential Capital Group was eager to work with the Big Star Oil & Gas team to craft a solution that met the company’s objectives. Drawing on its experience in the oil industry, Prudential Capital Group was able to create a structure which supported the company’s development efforts while preserving the equity holder’s stake.

The tailored solution called for Prudential Capital Group to provide a $50 million senior secured advancing mezzanine facility. The facility had an initial borrowing base of $20 million, enabling Big Star Oil & Gas to fund its early development wells. The borrowing base was reassessed periodically to allow ample development capital in an efficient manner.

Big Star Oil & Gas chose Prudential Capital Group as its financing partner for the certainty of its execution capabilities, its industry expertise, and its unique deal-structuring capabilities, allowing Prudential Capital Group to meet Big Star Oil & Gas’s unique financing needs.