BridgePeak Energy Capital Closes USDA-Guaranteed Loan for Oklahoma Oil & Gas Acquisition
BridgePeak Energy Capital, LLC, a provider of commercial loan origination, servicing and portfolio management solutions for regulated financial institutions and private credit funds, has announced the closing of a loan to Yampa Energy, LLC, backed by a guarantee from the U.S. Department of Agriculture’s Business & Industry (B&I) Loan Guarantee Program.
Pathward®, N.A. provided the funding for the transaction, while BridgePeak served as the lender service provider. The financing supported Yampa Energy’s acquisition of a producing oil and gas field in Caddo County, Oklahoma, adding another transaction to BridgePeak’s activities in financing energy assets located in rural communities.
The acquired property is a shallow, low-decline waterflood located in the Bromide formation. According to BridgePeak, all of the production associated with the acquisition consists of proved developed producing (PDP) reserves. The nature of the asset provides Yampa with an existing production base while also offering opportunities to improve operating performance and cash flow through targeted field-management activities.
Yampa intends to focus initially on operational improvements designed to strengthen the economics of the acquired field. One of the company’s planned measures is to shut off zones with the highest water cuts. Reducing production from these intervals is expected to lower lifting costs associated with handling excess water and potentially improve the economics of the remaining oil production.
The company also plans to reopen oil-bearing intervals in existing wellbores that have not previously been produced. By accessing these previously unproduced intervals, Yampa expects to identify additional opportunities within the existing well infrastructure without relying solely on the development of new wells.
The acquisition reflects Yampa’s strategy of targeting smaller-scale, PDP-focused oil and gas properties where operating improvements can potentially generate measurable changes in cash flow. The company said its approach is centered on acquiring assets where the primary value drivers can be evaluated relatively quickly and where field-level optimization can support improved financial performance.
“This acquisition fits our strategy of acquiring sub-scale, PDP-heavy assets where we can quickly understand the key value drivers and improve cash flow,” said Jonathan Tovar, Managing Member of Yampa. “We remain basin agnostic and expect to stay active as we evaluate additional opportunities.”
Yampa’s basin-agnostic strategy means the company is not limiting its acquisition activities to a single producing region. Instead, it intends to consider opportunities based on asset characteristics, production profiles and potential for operational improvement. The Caddo County acquisition therefore represents both an expansion of Yampa’s producing asset base and an example of the type of mature production opportunity the company is seeking.
The transaction was supported by the USDA Rural Development B&I Loan Guarantee Program. The program is intended to improve access to private-sector financing for businesses operating in rural communities. Under the structure, the USDA guarantees a portion of an eligible loan made by a private lender. By providing this guarantee, the program can reduce the lender’s exposure to qualifying transactions and facilitate financing for businesses and projects that may not fit conventional bank lending parameters.
For rural energy companies, access to long-term capital can be important for acquiring and maintaining producing assets. Oil and gas properties located outside major metropolitan markets can require financing for acquisitions, equipment, field improvements and other capital needs. Programs such as the B&I Loan Guarantee Program can provide another financing avenue for businesses seeking to invest in rural assets.
The USDA program serves a broad range of industries and is not limited to energy. Rural businesses in sectors including agriculture, manufacturing and other commercial activities can potentially use the program to support eligible projects. Its loan guarantees are intended to encourage private lenders to provide capital to businesses that contribute to economic activity and employment in rural areas.
For BridgePeak, the transaction demonstrates its role in arranging and servicing commercial financing for specialized assets. As lender service provider, BridgePeak worked in support of Pathward, which funded the loan. The company provides loan origination, servicing and portfolio management services for regulated financial institutions and private credit funds.
BridgePeak said the transaction highlights the continuing role that USDA business loan programs can play in supporting rural energy production. The company expects these financing tools to remain relevant for operators acquiring and developing energy assets located in rural markets.
“Energy production in rural America depends on operators like Yampa,” said Shawn Andrews, Chief Executive Officer of BridgePeak. “We expect the USDA business loan programs to remain an important tool for financing rural energy assets.”
The Caddo County transaction gives Yampa an established producing property with a base of PDP reserves and identified opportunities for operational optimization. Its plans to reduce high-water-cut production and evaluate previously unproduced oil-bearing intervals are intended to improve the field’s economics while making use of existing wellbores and infrastructure.
For BridgePeak and Pathward, the financing also illustrates how government-backed credit programs can support private-sector investment in established energy-producing assets. As Yampa continues evaluating additional acquisitions, the company’s focus on sub-scale, PDP-heavy properties and its basin-agnostic approach could lead it to consider opportunities across multiple U.S. producing regions.
The transaction combines an existing production base with a strategy focused on incremental field optimization. Through the USDA-backed financing, Yampa has obtained capital to complete its Oklahoma acquisition while retaining opportunities to pursue operational improvements across the property.
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