Kraken Resources LLC (“Kraken” or the “Company”), today announced that its subsidiary, Kraken Oil & Gas Partners LLC, has closed its private offering (the “Notes Offering”) of $400 million in aggregate principal amount of 7.125% senior unsecured notes due 2031 (the “Notes”).
The Notes were issued at par on May 11, 2026. The Company intends to use the net proceeds from the Notes Offering to repay a portion of the outstanding borrowings under the Company’s revolving credit facility and pay the estimated fees and expenses in connection with the Notes Offering.
The Notes and the related guarantees have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and unless so registered, the Notes and the related guarantees may not be offered or sold within the United States, or to or for the account or benefit of any U.S. person, absent registration or an applicable exemption from registration requirements. The Notes were offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to non-U.S. persons outside the United States only in compliance with Regulation S under the Securities Act.
Acquisition of Zavanna Energy Operating
On March 31, 2026, the Company acquired the membership interests of Zavanna Energy Operating, LLC, a company engaged in the development of oil and gas properties in North Dakota (the “Zavanna Acquisition”). The acquired assets include 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 Mboe per day at closing. The acquisition also includes related infrastructure, including gathering systems and 11 saltwater disposal wells. The Company funded the acquisition with borrowings under its revolving credit facility, a portion of which were repaid with the net proceeds of the Notes Offering, as well as a $200 million equity contribution from affiliates of Kayne Anderson and certain members of the Company’s management team.
Select 2025 Financial and Operating Results
For the year ended December 31, 2025, Kraken reported Adjusted EBITDAX of $1,049 million and Adjusted Free Cash Flow of $563 million. Company net production averaged 85 Mboe per day, of which 68% was crude oil.
About Kraken
Kraken is a private exploration and production company formed in 2012 to focus on drilling and development opportunities in the Williston Basin, primarily in the prolific Bakken formation. Kraken is the sixth largest producer in the Williston Basin. We have drilled over 500 wells since inception and currently operate more than 1,200 wells. The Company estimates it has approximately 18 rig-years of remaining inventory with an average lateral length of nearly 16,000 feet across 404,000 net acres in North Dakota and Montana.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance and can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “potential,” “targets,” “forecasts,” “seeks,” “could,” “should” or the negative of such terms or other variations of such terms or comparable terminology are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events at the time such statement was made. Forward-looking statements may include statements about the Zavanna Acquisition, the terms of the Notes Offering, the intended use of proceeds therefrom, the ability to realize the anticipated benefits of the Zavanna Acquisition or the Notes Offering, the Company’s business strategy, the Company’s financial strategy, liquidity and capital required for the Company’s development program, the timing and amount of future production of natural gas, oil and natural gas liquids, the Company’s future drilling plans and locations, the Company’s estimated proved reserves, the results, effects, benefits and synergies of mergers and acquisitions, including the Zavanna Acquisition, costs of developing the Company’s properties, including the Company’s projected drilling and completion costs, and objectives, plans and goals contained in this press release that are not historical.
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