As today's low oil and gas prices increasingly drain energy companies' cash flow and their access to capital markets is becoming more restricted, they are starting to reach out to private equity firms. Hilcorp Energy Company, a closely held U.S. independent exploration and production company, exemplifies this trend.

Houston-based Hilcorp recently announced it had formed a partnership with private equity firm Carlyle Group to acquire and develop North American oil and gas properties. Carlyle's Energy Mezzanine Opportunities Fund and Carlyle Energy Mezzanine Opportunities Fund II have agreed to invest up to $1.24 billion in the newly formed partnership called Hilcorp Energy Development.

William R. Keffer, the visiting associate professor of practice and director of the energy law lecture series at Texas Tech University School of Law in Lubbock, recently discussed with Texas Lawyer the new partnership formed by Hilcorp and Carlyle. Keffer is also the assistant director of bar preparation resources at the law school.