IOG Resources: A Deep‑Dive into Our History, Strategy & Partnership Model

Updated April 2025

1  Our Origin Story

IOG Resources ( “IOGR” ) was founded in 2014 to provide disciplined, partnership‑minded capital to U.S. upstream projects. Head‑quartered in Dallas, Texas, the firm began as a lean team of engineers, geologists, and finance professionals who saw untapped potential in the non‑operated model.

Year	Milestone	Capital Vehicle
2014	Firm founded; first non‑op WI acquisition	IOG Capital
2017	Strategy expands; multiple DrillCo JVs	IOG Resources I
2022	Launch of second large‑scale fund	IOG Resources II
2025	Third vehicle in market, ready to deploy	IOG Resources III

Across commodity cycles we have deployed $1.6 billion into 31&nbsp>investments, proving the repeatability of our approach.

2  Who We Are Today

Professionals	12
Capital deployed to date	$1.6 B
Active investments	31
Headquarters	Dallas, TX

Three open platforms—IOG Resources I, II, and III—let us write tickets starting at $50 million, whether a one‑off working‑interest purchase or a multi‑year development joint venture.

3  What We Do

3.1  Non‑Operated Working‑Interest (WI) Acquisitions

We acquire non‑op WI in producing wells or drill‑ready locations via direct sales, PDP wellbore carve‑outs, or competitive bid processes.

• Seller benefits: immediate liquidity, portfolio optimization, and clean exits for passive owners.

3.2  Development Capital JVs (“DrillCo” Structures)

We fund a material share of project capital expenditure in exchange for either a perpetual WI or a reversionary interest that drops to the operator after payout.

• Operator benefits: boosted IRR, flexible structure, off‑balance‑sheet capital.

Our mandate spans every major Lower‑48 basin and all commodity windows—oil, gas, and NGL‑rich plays.

4  How We’ve Performed

• 31 investments closed with no material capital impairments.
• Hundreds of wells funded from Midland Basin Wolfcamp to Utica dry gas.
• Multiple repeat counterparties, reflecting transparent execution.

Deal	Basin	Structure	Value Created
DJ Basin WI package (Mar 2024)	DJ	Non‑op WI acquisition in ~1,480 wells	Liquidity for seller; streamlined portfolio
Permian JV with Elevation Resources (Apr 2025)	Midland	10‑well DrillCo	Enabled full‑year rig schedule and cost efficiency

5  How We Execute

1. Technical Rigor – Independent engineering, geologic, and economic analysis.
2. Disciplined Underwriting – Stress‑tested downside cases ensure resilient returns.
3. Speed & Certainty – Flat hierarchy moves deals from NDA to PSA in weeks.
4. Aligned Structures – Terms co‑designed so operators maximize NPV.

6  How We Can Help You

If You Are…	We Provide…	Typical Outcome
Public or private operator needing CapEx relief	DrillCo or minority WI sale	Preserve drilling cadence and boost ROIC
Non‑op investor pruning a legacy portfolio	Competitive bid or negotiated take‑out	Efficient exit from long‑tail PDP & PUD inventory
A&D advisor marketing an asset package	Committed capital and streamlined diligence	Higher closing probability with fewer re‑trades
Minerals or royalty owner	Customized participation or cash‑out options	Monetize upside while retaining royalty income

7  Looking Ahead

With IOGR III now open, we are actively seeking new non‑op WI and development partnerships across the Lower‑48. Ticket sizes can scale above $50 million; basin and commodity are flexible so long as the rocks and returns meet our standards.

In‑Depth Case Studies of Recent IOGR Transactions

Prepared April 2025

Case Study 1  |  Civitas Acquisition (Closed March 2024)

Opportunity & Relationship

IOGR cultivated relationships with four key Civitas officers over a six‑year period, logging 24 individual touchpoints across prior roles at Former Company A, B, C, D, and E. When Civitas chose to self‑market a non‑core divestiture, IOGR was the first call on the short list.

Sourcing Playbook

• Proactive relationship management beginning in 2018
• Regular technical check‑ins to stay current on Civitas development plans
• Positioned IOGR as a ready buyer of concentrated, non‑operated PDP and short‑cycle inventory

Speed‑to‑Close Timeline

Initial data shared	Day 0
Proposal submitted	Day 8
PSA signed	Day 16 (business days)
Funds wired / deal closed	Day 31 (business days)

Outcome & Value Created

• Civitas achieved a swift, certainty‑backed exit on its desired schedule.
• IOGR added a low‑decline PDP base plus follow‑on drilling options.
• The closing process showcased IOGR’s ability to write sizeable checks quickly with limited conditions.

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Case Study 2  |  Pioneer 3.0 Development JV (Midland Basin)

Background & Deal Evolution

The partnership with Pioneer Natural Resources began in 2020 with “Pioneer 1.0,” expanded in 2021, and progressed to a third tranche (“Pioneer 3.0”) when Pioneer approached IOGR directly in February 2023. This progression underscores the trust built through prior joint developments.

Technical Evaluation Highlights (February 2023)

• Constructed independent oil, gas, and water forecasts based on offset analogs.
• Engaged VSO Petroleum Consultants for third‑party review of type curves.
• Bench‑marked operating costs with well‑level data from Pioneer 1.0 & 2.0.
• Modeled pricing differentials using historical realizations and current marketing terms.

Execution Process (March 2023)

1. Negotiated gross‑project terms aligning Pioneer’s objectives with IOGR’s return thresholds.
2. Secured approvals from Pioneer’s Executive Committee and IOGR’s Board & Investment Committee.
3. Legal documentation drafted by Kirkland & Ellis in a Farmout & Development Agreement.
4. Placed hedges covering 50 % of first‑year net oil volumes at signing.

Closing & Impact (April 2023)

• Transaction closed on schedule, marking the third consecutive development JV between the parties.
• Demonstrated the scalability of IOGR’s check‑writing capacity for multi‑year drilling programs.
• Provided Pioneer with off‑balance‑sheet capital while preserving operational control.

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Case Study 3  |  OhPa Acquisition (Closed May 2023)

Sourcing Context

A Stephens‑run sale process launched in November 2022 for a legacy DrillCo asset (66 producing wells and ~7,000 net acres across Ohio and Pennsylvania). The seller prioritized certainty of close before fund term‑end.

Underwriting Framework

Discipline	Key Workstreams
Technical	Type curves by zone; well‑level forecasts vetted by VSO Petroleum; upside evaluation of undeveloped inventory.
Commercial	Fixed and variable cost benchmarking; product differential analysis; NGL composition review for refined pricing.
Financial	Full asset model with sensitivities; integration into IOGR II corporate model; hedge strategy priced on forecasted production.

Execution Milestones

• IOGR selected as preferred buyer after two bid rounds.
• PSA signed 3/28/23 with performance provisions and volume hedges in place.
• Full close and funding on 5/17/23 via a mix of equity and credit‑facility proceeds.

Strategic Rationale & Results

• Acquired high‑duration cash flow with liquids exposure at an attractive entry valuation.
• Comprehensive hedging mitigated price risk through closing and early ownership.
• Demonstrated IOGR’s ability to underwrite and fund sizeable checks on accelerated timelines in a marketed process.

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Key Lessons Across Our Recent Transactions

1. Relationship Capital Leads to Deal Flow Years of consistent, value‑added interaction convert into first‑call opportunities.
2. Disciplined, Ground‑Up Diligence Wins Confidence Detailed technical, commercial, and financial underwriting secures internal and counter‑party approvals.
3. Speed and Certainty of Check Delivery Matter Ability to sign PSAs within weeks and fund on schedule differentiates IOGR in both proprietary and marketed settings.
4. Risk Management is Integral Structured hedging at or before signing protects returns and reassures lenders, boards, and sellers alike.

Disclaimer: The information above is for discussion purposes only and does not constitute an offer to buy or sell securities. Forward‑looking statements are subject to risks and uncertainties that could cause actual results to differ materially.