Rising Phoenix Capital Expands Midland Basin Footprint with New ConocoPhillips Deal
- 05-May-2025 11:30 PM
- Journalist: Emilia Jackson
Rising Phoenix Capital, a Dallas-based boutique investment firm specializing in oil and gas mineral royalty acquisitions, has announced a purchase of mineral interests in Ector and Midland Counties, Texas. The acquired assets are operated by ConocoPhillips and further solidify Rising Phoenix Capital's growing presence in the core of the Midland Basin, a region renowned for its high energy production.
This acquisition, made through the firm's Maroon Bells Fund, includes both currently producing wells and permitted locations for near-term drilling. This combination offers investors in the fund a compelling opportunity for immediate, consistent monthly cash flow, coupled with the potential for long-term growth through future development of the drilling locations.
This latest deal marks Rising Phoenix Capital's fourth acquisition within the Midland Basin in 2025, underscoring the company's focused "ground game" strategy of directly sourcing assets. Instead of acquiring marketed packages, Rising Phoenix Capital prioritizes building institutional-grade portfolios through cultivating direct relationships with landowners, brokers, and mineral managers. This approach allows them to identify and secure potentially undervalued assets, providing unique opportunities for their investors.
Jace Graham, CEO and Founder of Rising Phoenix Capital, emphasized the firm's disciplined investment approach. "Our underwriting is built around predictability鈥攏ot hype," Graham stated. "We target high-quality operators, proven geology, and mineral assets that deliver dependable monthly income. This acquisition furthers our commitment to that discipline and strengthens our presence in the heart of the Midland."
The Midland Basin, part of the larger Permian Basin, continues to be a key area for oil and gas production in the United States. While recent data indicates a slight dip in overall drilling activity in the first quarter of 2025 compared to the previous year, the region remains highly active with numerous operators and a diverse range of contractors. ConocoPhillips is a significant player in the Midland Basin, holding a substantial acreage position and operating a large number of producing wells. They are known for their application of advanced technologies to optimize well spacing and improve drilling efficiencies in the region. Their operations are supported by infrastructure such as the Beta Crude Connector, a pipeline system wholly owned by a ConocoPhillips subsidiary, which facilitates the transportation of crude oil to refineries and export markets.
Rising Phoenix Capital's focus on acquiring mineral royalties provides investors with a unique entry point into the energy sector. Royalty owners receive a percentage of the revenue generated from oil and gas production on their mineral interests, without the burden of operational costs or risks associated with drilling and production. This can result in stable, long-term income streams, particularly when partnered with experienced operators like ConocoPhillips in prolific basins.