Eagle Ford pure-play Hawkwood Energy LLC is set to be acquired by private equity-backed platform WildFire Energy I LLC, the firms announced Thursday.
The transaction, slated to close in the third quarter, values Denver-based Hawkwood at about $650 million.
Hawkwood’s liquids-weighted gross production currently stands at about 15,000 boe/d, spanning 160,000 net acres in the Eagle Ford.
“The improving environment for oil and gas presents exciting opportunities for WildFire and we are pleased to have the backing of our sponsors to go pursue them,” WildFire CEO Anthony Bahr said. The company was formed in 2019 with funding from Warburg Pincus LLC and Kayne Capital Advisors LP.
Bahr previously led WildHorse Resource Development Corp. before its $4 billion sale to Chesapeake Energy Corp. in 2018. He is joined in the C-suite by COO Steve Habachy, who previously held the same role at WildHorse.
Upon closing, the combined entity is set to retain the WildFire Energy name, and WildFire’s management team would operate the assets. The group brings “extensive experience in the Eagle Ford, having previously managed WildHorse Resource Development Corp.,” said the statement from Hawkwood and WildFire.
The firms added that, “a significant investment from Kayne Anderson and WildFire Energy’s management team will substantially de-lever” the new company.
Once the transaction is complete, existing Hawkwood shareholders would retain a roughly 50% equity interest in WildFire, with the remainder held by WildFire’s management team and sponsor Kayne Anderson.
“Enabled by its strong balance sheet, WildFire will actively pursue attractive opportunities both through the drill-bit and via accretive acquisitions,” said Kayne Anderson’s Mark Teshoian, managing partner.
Hawkwood management believes “that joining with WildFire is the next logical step in our evolution,” said Hawkwood CEO Jim Addison. “We are impressed by the team’s extensive knowledge of and experience in this basin and are excited for the opportunities that lay ahead.”
The Eagle Ford rig count stood at 32 as of Friday, up from nine in the similar week last year, according to the latest data from Baker Hughes Co.
Drilled but uncompleted wells in the play stood at 1,040 as of May, down by 31 from April, as operators are focusing on completing wells rather than costly new development as oil prices improve.
"pure" - Google News
July 10, 2021 at 03:58AM
https://ift.tt/3AXFJ50
PE-Backed WildFire Energy Acquiring Eagle Ford Pure-Play Hawkwood in $650M Deal - Natural Gas Intelligence
"pure" - Google News
https://ift.tt/3d6cIXO
https://ift.tt/35ryK4M
Bagikan Berita Ini
0 Response to "PE-Backed WildFire Energy Acquiring Eagle Ford Pure-Play Hawkwood in $650M Deal - Natural Gas Intelligence"
Post a Comment