Page 13 - NorthAmOil Week 24

NorthAmOil
NEWS IN BRIEF
NorthAmOil
combined acreage position of approximately 165,000 net acres, primarily in King sher County, Oklahoma.
Chisholm is currently running three rigs and has a dedicated frack crew. e parties believe that the Gastar assets will be highly synergistic to their upstream operations as well as to Chisholm’s ownership stake in Great Salt Plains Midstream Holdings and its wholly-owned salt water disposal subsidiary, Cottonmouth SWD.
e transaction is expected to close in the 3rd quarter of 2019, subject to satisfaction of customary closing conditions.
Chisholm was formed in 2017 with backing from funds managed by certain a liates of Apollo Global Management and management. Gastar is owned through private equity funds a liated with Ares Management Corporation.
Chisholm was advised by Citigroup as nancial advisor, and Vinson & Elkins and Paul, Weiss, Ri ind, Wharton & Garrison, as legal advisors. Evercore and Tudor Pickering Holt & Co. provided nancial advisory services to Gastar in connection with the transaction, and Kirkland & Ellis served as legal advisor to Gastar.
CHISHOLM OIL AND GAS AND GASTAR EXPLORATION, June 19, 2019
Keane and C&J Energy Services to combine
in merger of equals, establishing an industry- leading, diversified oilfield services provider
C&J Energy Services and Keane Group today announced that they have entered into a de nitive agreement whereby the companies will combine in an all-stock merger of equals. e combined company will be positioned
as an industry-leading, diversi ed oil eld services provider with a pro-forma enterprise value of approximately US$1.8 billion, including US$255 million of net debt.
Under the terms of the merger agreement, which has been unanimously approved by
the Boards of Directors of both companies and the Special Committee of the Keane Board, C&J shareholders will receive 1.6149 shares of Keane common stock for each share of C&J common stock owned. e merger agreement permits C&J to pay its shareholders a cash dividend of US$1.00 per share prior
to closing. Upon closing, Keane and C&J shareholders will, in the aggregate, each own
50% of the equity of the combined company on a fully diluted basis. e share exchange is expected to be tax-free.
e merger of equals will create a leading well completion and production services company in the US, with increased scale
and density across services and geographies with a prominent presence in the most active US basins. Both C&J and Keane share a commitment to safety and integrity, employee development, partnerships with blue-chip customers, technological innovation, and strong community relationships, all of
which will be re ected in the operations of
the combined company. On a pro-forma
basis, the combined company would have approximately US$4.2 billion in net revenue and approximately US$636 million in adjusted EBITDA for the 12 months ended March
31, 2019. In addition, the two companies anticipate to achieve annualized run-rate cost synergies of US$100 million within 12 months a er closing. With approximately US$173 million in cash, or US$106 million a er the US$1.00 per share cash dividend is paid to C&J shareholders, the combined company will have exibility to invest in growth and technology and return capital to shareholders. C&J ENERGY SERVICES AND KEANE GROUP, June 17, 2019
Legacy Reserves files
for Chapter 11 protection
to facilitate negotiated
financial restructuring
Legacy Reserves announced today that it has, together with its subsidiaries, commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, pursuant to the terms of the previously announced global restructuring support agreement between the company, its lenders under its revolving credit facility, its lenders under its second lien term loan, and an ad hoc group of senior noteholders (the “ad hoc group of senior noteholders”, which, together with the other creditors party to the global RSA, hold most of the company’s outstanding unsecured notes).
e company intends to operate in the ordinary course of business during the Chapter 11 cases, and has led a number
of customary “ rst day” motions to enable
the company’s operations to continue as usual. Speci cally, the company requested authority, among other things, to pay in full on a normal-course basis employee wages and honor existing employee bene t programs,
vendors and other operating expenses, joint interest billings for non-operated properties, and royalties to mineral interest owners under terms of applicable agreements. As previously announced, the company has received a commitment for US$350 million in debtor-in-possession nancing that, subject to court approval, will re nance portions of the company’s existing reserve-based credit facility and, when combined with cash from operations, will provide ample liquidity to support the Company’s continuing business operations during the Chapter 11 cases. LEGACY RESERVES, June 18, 2019
Brent Wahl joins
NextDecade as SVP of
finance
NextDecade announced today that it has appointed Brent Wahl as Senior Vice President, Finance.
In this role, Mr. Wahl will be responsible for leading the nancing needs of NextDecade’s Rio Grande LNG project as part of the company’s e orts to provide the largest LNG export solution linking Permian Basin associated gas to the global LNG market.
Mr. Wahl will be particularly focused on project-level debt and equity nancing for
the construction of NextDecade’s Rio Grande LNG project in the Port of Brownsville, Texas.
“Brent is widely known as one of the LNG industry’s preeminent nancial advisors, and we are thrilled to have him join our leadership team,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive O cer. “Brent brings considerable expertise to carry out our Rio Grande LNG nancing plans and work with our joint project-level nancial advisors, Société Générale and Macquarie Capital.”
Prior to joining NextDecade, Mr. Wahl was a Senior Managing Director and Head
of Midstream Investment Banking for North America at Macquarie. During his nine years at Macquarie, Mr. Wahl handled advisory assignments and capital raises for companies across the energy value chain, including more than $15 billion of debt and equity in support of the construction of LNG facilities in North America.
“I am pleased to join NextDecade as the company approaches a nal investment decision on its ideally positioned Rio Grande LNG project later this year,” said Mr. Wahl. “NextDecade is deploying a solutions-oriented approach to provide Permian Basin producers natural gas ow assurance and access to the global LNG market, and I am delighted to help execute this industry-leading strategy.” NEXTDECADE, June 17, 2019
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