EnCap Investments and the team behind Double Eagle companies have expanded their strategic partnership, forming Double Eagle Energy Holdings V (Double Eagle V) and Tumbleweed Royalty V (Tumbleweed V) with $2.5bn in equity.

Headquartered in Fort Worth, Texas, Double Eagle V will primarily invest in oil and gas properties across the Permian Basin.

Tumbleweed V will focus on royalty and mineral investments across multiple US basins, with a primary focus on the Permian Basin.

The entities retain commitments from Double Eagle management, Elda River Capital Management, Apollo Global Management affiliates and other strategic partners.

Double Eagle co-chief executive officers Cody Campbell and John Sellers said: “We have enjoyed our partnership with EnCap and are pleased to expand the relationship. We have a great deal of confidence in our team and are proud of the assets we have been able to assemble and the incredible operational efficiency that we have been able to achieve.

“With the financial strength of our partners, and the tremendous commercial and operational momentum we have built, we are well-equipped to confidently pursue even greater ambitions in the Permian Basin.”

The same management team that led the predecessor companies formed Double Eagle V and Tumbleweed V.

EnCap managing partners Jason DeLorenzo and Doug Swanson said: “We have enjoyed working with the Double Eagle team and are excited to continue our partnership after the tremendous success of Double Eagle IV to date.”

Diamondback Energy recently announced a definitive agreement to acquire subsidiaries of Double Eagle IV Midco, marking an expansion in the Midland Basin, US.

The assets being acquired cover approximately 40,000 net acres in the Midland Basin’s core and are expected to produce 27,000 barrels of oil per day.

As part of the transaction, Double Eagle will receive approximately 6.9 million shares of Diamondback’s common stock and a cash payment of $3bn.