Percussion Petroleum

What Percussion Petroleum does

Percussion Petroleum III, LLC is a privately-held, Houston-based upstream oil and gas exploration and production company operating as a series of Carnelian Energy Capital-sponsored vehicles. The company was founded in 2016 by John H. Campbell III, Lupe Carrillo, and Brian Zwart in partnership with Carnelian Energy Capital, and has executed two prior full-cycle programs: Percussion Petroleum I, LLC, which assembled a 22,000-net-acre position in the Yeso formation across Eddy and Lea Counties, New Mexico (380 gross wells, ~9,200 net boe/d at ~85% liquids) and divested it to Spur Energy Partners (with KKR) in mid-2019; and Percussion Petroleum II, LLC, capitalized by Carnelian Energy Capital III in March 2020, which developed Delaware Basin assets and divested the bulk of its position to Callon Petroleum in 2023 for ~$475M plus contingent payments (a transaction valued at ~2.5x NTM EV/EBITDA). The current entity, Percussion Petroleum III, LLC, continues the same management team and Carnelian partnership to pursue acquisition and development opportunities in select North American onshore basins, with stated assets in New Mexico and Texas.

Core technical capability centers on horizontal drilling and completion design in the Yeso formation: modern completion techniques using more than 1,000 pounds of proppant and 2,500 gallons of water per foot of lateral, achieving record 30-day initial production rates of 1,080–1,208 BOE/d per well on a three-stream basis (91–92% liquids, 80% oil), at well costs of ~$3–$4 million per well and an average productive lateral length of ~4,915 feet at roughly 3,000 feet true vertical depth. Operational leadership comprises specialists in subsurface (EVP Colby Carpenter, ex-Riverbend and Pioneer Natural Resources), operations (EVP Corley Walters, ex-Sable Permian, Vitruvian, and Marathon), land (VP Adam Pressnall, ex-Ovintiv, Midstates, Samson), geology (VP Andrew Pollack, ex-Citi/Venado/Devon), and reservoir engineering (Pablo Madrid and Max Moxley).

The business model is asset-driven rather than recurring-revenue-driven: the firm acquires upstream producing properties and undeveloped acreage, develops them through horizontal drilling, optimizes completions to maximize initial production and EUR, and ultimately divests the assembled asset package to a larger operator (e.g., Callon Petroleum, Spur Energy Partners). Revenue is generated from sale of crude oil, natural gas, and NGLs produced during the development period; the firm does not disclose pricing. Go-to-market is direct asset transactions with strategic and financial E&P buyers; distribution is "Direct Asset Sales to E&P Companies" at domestic/enterprise scope. The firm's "customers" in the conventional sense are the acquirers of its divested asset packages rather than end users, which makes the model closer to a PE-style A&D sponsor than a production-weighted operator.

Name

Percussion Petroleum

Legal name

Percussion Petroleum III, LLC

Website

https://percussionpetroleum.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

1–10 employees

Short description

Percussion Petroleum is a Houston-based, Carnelian Energy Capital-backed upstream oil and gas company that acquires and develops horizontal oil and gas assets in select North American onshore basins, primarily the Yeso formation in the Permian, and exits through asset sales to larger operators.

Ownership category

akta.pro rank

Product category

Upstream Oil and Gas Exploration & Production

NAICS

Crude Petroleum Extraction (21112), Natural Gas Extraction (211130)

SIC

Crude Petroleum & Natural Gas (1311)

akta.pro primary industry

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

Keywords

• Upstream oil and gas
• Horizontal drilling operations
• Permian Basin development
• Yeso formation production
• Oil and gas exploration

Headquarters

HQ city

Houston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Oil and Gas Production Revenue: Percussion Petroleum generates revenue through exploration and production of oil and natural gas from onshore North American basins, particularly the Permian Basin Yeso formation.

Distribution channels1 record

Marketing channels1 record

Core offering

Percussion Petroleum is an independent upstream oil and gas company that acquires and develops onshore hydrocarbon assets in North America, primarily horizontal drilling positions in the Yeso formation of the Permian Basin (Eddy and Lea Counties, New Mexico). The company generates revenue by producing and selling crude oil and natural gas, with associated water and midstream assets, from its operated acreage positions, and monetizes those assets through divestitures to larger operators.

Product overview

Percussion Petroleum is an independent oil and gas exploration and production company headquartered in Houston, Texas. The company has operated through three distinct entities (Percussion Petroleum I, II, and III) in partnership with Carnelian Energy Capital, pursuing acquisition and development strategies in select onshore North American basins. The company's primary focus has been horizontal drilling in the Yeso formation within the Northwest Shelf of the Permian Basin, specifically in Eddy and Lea Counties, New Mexico. Percussion's product offering centers on crude oil and natural gas production from their developed acreage positions, with associated water and midstream assets. The company has divested various asset packages over time, including the Northwest Shelf assets (sold to Spur Energy Partners in 2019) and Delaware Basin assets (sold to Callon Petroleum in 2023).

Differentiator

Problem solved

Functional benefit

Products and services

• Yeso Formation Oil and Gas Production

Quantifiable outcome

• 30-day IP rates of 1,080-1,208 BOE/d (91-92% liquids, 80% oil)
• +2 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Two partnerships are on record, tiered major.

• Callon Petroleum CompanymajorStrategic or Co-development Partner · 3 May 2023Callon Petroleum acquired membership interests of Permian-based Percussion Petroleum Operating II, LLC in a cash and stock transaction valued at approximately $475 million plus potential contingent payments of up to $62.5 million. Percussion received $265 million cash and up to 6.46 million shares of Callon common stock.
• Spur Energy Partners, LLCmajorStrategic or Co-development Partner · 1 January 2019Percussion I divested its Northwest Shelf asset including 380 gross producing wells and 22,000 net Yeso acres in Eddy and Lea Counties, New Mexico to Spur Energy Partners, LLC. Assets produced 9,200 net boe/d (85% liquids) at time of sale.

Scale indicators8 records

Recent moves7 records

Expansion highlights4 records

Others

• Sitio Royalties Corp: Public mineral and royalty rights company active in the Permian and other US basins. Competes for some of the same mineral interest packages Percussion pursues and is a structurally related counterparty in Permian A&D.
• Northern Oil and Gas: Public non-operated minerals and royalty company that often partners with or competes for the same non-op working-interest packages Percussion targets in the Permian. Comparable capital allocator in the upstream ecosystem.

Direct peers

• Luxe Energy: Houston-based private E&P where Percussion CAO Jerick Yuen previously served as Corporate Controller. Similar lower-middle-market, operator-friendly upstream platform in North American basins.
• Rockcliff Energy: Private, PE-backed Haynesville/Appalachia-focused operator where Percussion CEO John Campbell previously led business development and A&D. Comparable lower-middle-market independent E&P operating platform.
• Venado Oil & Gas: Eagle Ford-focused independent E&P where Percussion's VP of Geology Andrew Pollack previously worked. Operates the same buy-and-develop playbook in a US onshore basin.
• Spur Energy Partners: Houston-based, PE-backed (KKR) Permian operator that acquired Percussion I's Northwest Shelf/Yeso assets in 2019. Operates the same formation and basin with a similar buy-build-sell model, making it the closest direct comparable.
• Quantum Resources Management: Permian and Mid-Con focused E&P where Percussion CEO Campbell previously worked as a production and completions engineer. Operates in the same basins with a similar small-team, asset-acquisition-focused approach.
• Sabinal Energy: Private, PE-backed Permian-focused E&P where Percussion CFO Andrew McCooey previously served as VP of Finance. Small-team, lower-middle-market upstream operator with very similar operating model.

Broad incumbents

• Diamondback Energy: Large public pure-play Permian Basin operator with extensive Delaware/Midland footprint. Overlaps with Percussion's Yeso/peripheral Permian position and competes for the same M&A and capital markets.
• Callon Petroleum Company: Public Permian-focused operator that acquired Percussion II's Delaware Basin assets for ~$475M in 2023 and now operates the acreage. Same basin play, but larger balance sheet, public-market funding, and full Life-of-Field co-development model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/percussion-petroleum-ii-llc

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds1 record

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 Percussion Petroleum