EnCap Secures $2 Billion to Advance PennEnergy’s Marcellus Gas Expansion

EnCap Investments has closed a $2 billion continuation vehicle for PennEnergy Resources. The fund will support development of PennEnergy’s Marcellus Shale assets, expand its natural gas inventory, and fund bolt-on growth opportunities in a favorable gas market.

(P&GJ) — EnCap Investments L.P. has closed a $2 billion continuation vehicle to support the long-term development of PennEnergy Resources, LLC, marking the largest capital raise for a continuation structure in the upstream energy sector to date.

The vehicle, managed by EnCap, allows existing and new investors to extend their participation in PennEnergy’s Marcellus Shale assets while providing fresh growth capital for future expansion and bolt-on opportunities. The fund is anchored by Andros Capital Partners and Goldman Sachs Alternatives’ Vintage Strategies, with additional commitments from EnCap Energy Capital Fund XII, the EnCap General Partner, and PennEnergy management.

The new financing ensures that PennEnergy, a Pittsburgh-based independent focused on Marcellus Shale natural gas production, can continue to develop its high-quality, long-life resource inventory amid a constructive gas market. The structure provides investors with continued exposure to one of the largest and most productive dry gas basins in North America.

Jason DeLorenzo, Managing Partner at EnCap, said the strong investor response underscores confidence in both PennEnergy’s assets and EnCap’s long-term investment approach.

“We are appreciative of the opportunity to continue supporting the PennEnergy team as they expand during a very exciting period for the natural gas sector,” DeLorenzo said. “This transaction highlights the high-quality nature of PennEnergy’s business and the strong partnerships we’ve built across our investor base.”

The $2 billion continuation vehicle will also provide flexibility for strategic acquisitions and infrastructure optimization across PennEnergy’s operational footprint, positioning the company to capture growth in domestic and LNG-linked gas demand.

EnCap, one of North America’s leading energy private equity firms, has raised more than $40 billion across its energy-focused funds since its founding in 1988. The firm continues to deploy capital into upstream and midstream ventures aligned with long-term natural gas and energy transition trends.