Valorem Energy

About Valorem Energy

Valorem Energy, which now operates as Flywheel Energy, is a private exploration and production company focused on acquiring and operating large, producing onshore oil and gas assets in the United States. The company began in early 2017 as Valorem Energy with backing from Kayne Anderson Private Energy Income Fund. In 2018, the management team received a second equity commitment of $700 million and formed the new entity, Flywheel Energy.

The company's business model centers on acquiring long-life, cash-flowing natural gas assets. A landmark transaction for the company was the 2018 acquisition of Southwestern Energy's upstream and midstream assets in the Fayetteville Shale in Arkansas for $1.865 billion. This deal included over 900,000 net acres, more than 4,000 producing wells, and an integrated midstream gathering system with over 2,000 miles of pipeline. This acquisition significantly scaled the company's operations, making it a major operator in the region. Previously, as Valorem Energy, the company had acquired interests in the Williston Basin in 2017 for $285 million, which were later sold in 2019. The company has reportedly continued its growth by acquiring Exxon Mobil's Fayetteville assets in 2022 and Terra Energy Partners' Piceance Basin assets more recently. As of early 2024, Flywheel ranked as the 17th largest private U.S. E&P, producing approximately 673 MMcf/d.

Flywheel Energy is headquartered in Oklahoma City and is led by CEO Justin Cope. The company emphasizes operational excellence, safety, and environmental stewardship, having achieved a TrustWell™ Gold rating for its Fayetteville Shale operations, which recognizes responsibly sourced gas production.