Novo

What Novo does

Novo Oil & Gas is a privately held upstream oil and natural gas company headquartered in Oklahoma City, Oklahoma, that pursues liquids-rich unconventional assets in the Permian Basin with a particular focus on the Delaware Basin across Eddy County, New Mexico and Culberson County, Texas. The current operating entity, Novo Oil & Gas Holdings II, LLC (Novo II), was launched in April 2024 with an equity capital commitment from EnCap Investments and is led by a management team that previously built and exited the predecessor Novo Oil & Gas Holdings, LLC (Novo I) in a $1.5 billion sale to Earthstone Energy and Northern Oil and Gas in August 2023. Novo's technical approach emphasizes innovative exploration, drilling, and completion techniques and a subsurface-led evaluation philosophy ("quality of the rock over geography") rather than proprietary patented technology.

The company's business model combines (i) oil, gas, and NGL production sold at market prices directly to refiners, integrated energy companies, and midstream operators through bilateral contracts, and (ii) a build-and-exit model in which the company aggregates operated and non-operated mineral positions over time with the intent to divest the assembled asset base, as demonstrated by the Novo I transaction. Novo II is currently in an asset-acquisition and team-build-out phase, supported by a small headcount (11–50 employees) and capital from EnCap, with stated plans to pursue both operated and non-operated positions in stacked-pay zones of the Delaware Basin. Key functional stakeholders include wholesale hydrocarbon offtakers, landowners/leaseholders in the basin, and EnCap as the institutional financial backer.

Name

Novo

Legal name

Novo Oil & Gas Holdings II, LLC

Website

https://novoog.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

Novo Oil & Gas is a privately held, Oklahoma City-based upstream oil and gas company that pursues liquids-rich unconventional assets in the Permian/Delaware Basin through operated and non-operated mineral positions, backed by EnCap Investments and led by a team that previously exited Novo I for $1.5 billion.

Ownership category

akta.pro rank

Product category

Upstream Oil and Gas Exploration and Production

NAICS

Oil and Gas Extraction (2111), Crude Petroleum Extraction (211120), Natural Gas Extraction (211130)

SIC

Crude Petroleum & Natural Gas (1311), Drilling Oil & Gas Wells (1381)

akta.pro primary industry

Unconventional Resources Development (Shale/Tight, CBM) (EUALAAAH)

akta.pro secondary industries

Exploration & Prospecting (Geology, Geophysics, Seismic) (EUALAAAA), Drilling & Well Construction (E&P Operator-led) (EUALAAAD), Unconventional Gas E&P (Shale/Tight Gas) (EUAAAAAC)

Keywords

• Oil and gas exploration
• Upstream oil production
• Delaware basin drilling
• Natural gas liquids
• Unconventional asset development

Headquarters

HQ city

Oklahoma

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Operations, Personnel, Supply Chain, Infrastructure, Technology or R&D, Others

Revenue model

1. Oil and Gas Production Sales: Revenue generated from the sale of oil, natural gas, and natural gas liquids produced from operated and non-operated mineral positions in the Delaware Basin. Production from 114 wells at approximately 38,000 Boepd (37% oil, 66% liquids).
2. Asset Development and Divestiture: Company develops assets with the intent to grow and eventually divest, as demonstrated by the $1.5 billion acquisition of Novo I by Earthstone Energy and Northern Oil and Gas in August 2023.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

Novo Oil & Gas is a privately held upstream oil and gas exploration and production company that acquires, develops, and divests liquids-rich unconventional assets in the Permian Basin, with a primary focus on the Delaware Basin in Eddy County, New Mexico, and Culberson County, Texas. The company applies innovative exploration, drilling, and completion techniques across both operated and non-operated mineral positions, holding approximately 11,300 net acres and producing approximately 38,000 Boepd from 114 wells.

Product overview

Novo Oil & Gas is a privately held oil and natural gas company offering exploration, drilling, and completion services. The company operates through its current entity Novo Oil & Gas Holdings II, LLC (Novo II), which focuses on proven, liquids-rich unconventional assets in the Permian Basin, particularly the Delaware Basin. Novo II follows the successful track record of its predecessor Novo I, which was acquired in 2023 for $1.5 billion. The company serves the upstream energy sector with both operated and non-operated mineral position strategies.

Differentiator

Problem solved

Functional benefit

Products and services

• Crude oil, natural gas, and natural gas liquids (NGL) production from Delaware Basin assets Production and sale of crude oil, natural gas, and natural gas liquids from approximately 11,300 net acres in the Delaware Basin of Eddy County, New Mexico and Culberson County, Texas, with recent production of approximately 38,000 Boepd (37% oil, 66% liquids) from 114 wells, sold to refiners, integrated energy companies, and midstream operators via bilateral contracts.
• Asset acquisition, development, and divestiture in the Permian Basin

Quantifiable outcome

• ~38,000 Boepd production from 114 wells
• +4 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Scale indicators6 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• Diamondback Energy: One of the largest pure-play Permian operators with material Delaware Basin exposure. Larger-scale incumbent competing for the same acreage and talent as Novo; useful comp for basin-level operating benchmarks.
• Devon Energy: Major Delaware Basin operator and a former employer of Novo President Brandon Patrick and VP Land Peter Schmidt. Multi-basin independent with overlapping talent networks and direct basin competition.
• EOG Resources: Largest U.S. independent E&P with significant Delaware Basin footprint and a high-return, low-breakeven drilling inventory that mirrors Novo's stated sub-$40/Bbl economics. Broader portfolio but directly comparable on a per-well basis.

Direct peers

• Matador Resources: Independent E&P with concentrated acreage in the Delaware Basin, multi-bench drilling program, and liquids-weighted production mix similar to Novo's. Comparable size and operating model.
• Coterra Energy: Multi-basin independent with a significant Delaware Basin position following the 2021 Cabot acquisition. Operates the same stacked-pay zones Novo targets, with comparable deep inventory and liquids-rich economics.
• Mewbourne Oil Company: Privately held Permian/Delaware Basin operator with focus on horizontal unconventional development and liquids-rich production. Closest privately held peer to Novo II in scale, basin focus, and operating philosophy.
• Earthstone Energy (now Permian Resources): Delaware Basin-focused operator that acquired Novo I for $1.5B in August 2023, before merging into Permian Resources. Most directly comparable pure-play Delaware Basin E&P with similar unconventional horizontal development model.
• Northern Oil and Gas: U.S. non-operated working-interest aggregator focused on the Permian Basin, including the Delaware Basin. Acquired a 33⅓% stake in Novo I's assets for $0.5B as part of the 2023 Earthstone transaction; closest direct comp on acquisition strategy, basin exposure, and asset profile.

Others

• EnCap Investments (as LP/GP): While not a competitor, EnCap is Novo's sponsor and comparable private-equity platforms finance most peer E&Ps in the basin; relevant as a capital-structure and exit-path benchmark for the Novo II investment thesis.

Emerging players

• Tap Rock Resources: Privately held Delaware Basin-focused operator backed by a private equity sponsor. Smaller and earlier-stage than Novo II's predecessor, but directly comparable geographically and operationally.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Novo