Kraken Resources has announced the closing of a $400 million private offering of 7.125% senior unsecured notes due 2031 through its subsidiary Kraken Oil & Gas Partners, alongside the completed acquisition of Zavanna Energy Operating, LLC. The notes were issued at par on May 11, 2026, with proceeds used to repay a portion of outstanding borrowings under the company’s revolving credit facility.
The Zavanna acquisition, which closed on March 31, 2026, added approximately 35,000 net leasehold acres, 175 operated wells, and more than 100 drilling locations in core areas of Williams and McKenzie counties, North Dakota, with associated net production of approximately 14 thousand barrels of oil equivalent per day at closing. The deal also includes related infrastructure comprising gathering systems and 11 saltwater disposal wells. Kraken funded the acquisition with revolving credit facility borrowings and a $200 million equity contribution from affiliates of Kayne Anderson and certain members of management — a portion of which was repaid with proceeds from the notes offering.
The transactions build on strong 2025 financial results for the Houston-based company, which reported Adjusted EBITDAX of $1,049 million and Adjusted Free Cash Flow of $563 million for the year ended December 31, 2025, with average net production of 85 thousand barrels of oil equivalent per day, of which 68% was crude oil. Formed in 2012 and focused on the Williston Basin’s prolific Bakken formation, Kraken is the sixth largest producer in the basin and currently operates more than 1,200 wells across approximately 404,000 net acres in North Dakota and Montana.
