BlueStone Natural Resources, LLC

BlueStone Natural Resources, LLC (2006), and its successor BlueStone Natural Resources II, LLC (2010) have grown to be some of the most active acquisition focused companies in Texas. The BlueStone franchise has closed more than 100 transactions, ranging in size from $500 to more than $245 MM. BlueStone Natural Resources II is estimated to be the 9th largest gas producer in Texas, with operations of nearly 2000 wells located throughout the state.A valued partnership with Natural Gas Partners provides BlueStone with ample access to capital, facilitating its continued growth through acquisition, drilling and asset trades.The BlueStone team values its business relationships, and strives to be a committed, reliable partner as a participant in the upstream oil and gas space. Our efficiency in evaluating acquisitions, starting with property analysis and ending with formal documentation is approached in a non-confrontational manner that is conducive to deal finalization.

AXIO Natural Resources was the first company formed in the BlueStone franchise. In 2003, management partnered with Natural Gas Partners Fund VI, deploying $15 million in equity to acquire assets in South Texas and the Texas Panhandle. AXIO sold to Chesapeake Energy in 2006 for $145 million, ultimately achieving an 8.7x gross ROI.In 2006, fresh off the sale of AXIO, most of the AXIO team joined BlueStone Natural Resources. BlueStone deployed $89 million of equity capital from management and Natural Gas Partners Fund VIII to complete 60+ proprietary acquisitions to develop a portfolio of long lived oil and gas assets located in South Texas and East Texas. In 2011, BlueStone sold its South Texas assets as part of the initial public offering of Memorial Production Partners, a Houston-based Master Limited Partnership. The remaining East Texas assets were developed and sold to EOG in 2013. BlueStone ultimately generated a 3.3x gross ROI in a very challenging market that was punctuated with the economic downturn of 2008-2009.