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Shale Activist Hunts for New Target in ‘Uninvestable’ Sector

  • Kimmeridge is said to target up to $1 billion for its new fund
  • Private equity firm says industry needs to change way it’s run
A gas flare is seen at dusk in Texas.

A gas flare is seen at dusk in Texas.

Photographer: Bronte Wittpenn/Bloomberg

The energy-focused private equity firm Kimmeridge Energy Management is looking for a U.S. shale producer to target for an overhaul, saying the sector has become “uninvestable.”

The New York-based firm, which is focused entirely on U.S. oil and gas investments, is part of a growing chorus calling for radical action in the shale industry. Producers have bloated overhead costs, misaligned management incentives and are pursuing unsustainable expansion, the firm said in a white paper laying out its investment thesis, which was seen by Bloomberg.