EMG-backed AEPB agrees to buy acres in Permian Basin for $2.5 bln

American Energy – Permian Basin said Monday that it has agreed to acquire about 63,000 acres in the southern Permian Basin, primarily in two Texas counties from Denver-based Enduring Resources for $2.5 billion. AEPB is backed by The Energy & Minerals Group and First Reserve Corp. Goldman Sachs provided the financing for the acquisition. Also, Goldman Sachs, Tudor, Pickering, Holt & Co. and Citi served as financial advisors to AEPB while Jefferies was financial advisor to Enduring.

PRESS RELEASE

OKLAHOMA CITY, June 9, 2014 /PRNewswire/ — American Energy – Permian Basin, LLC (AEPB), an affiliate of American Energy Partners, LP (AELP), announced today that it has signed an agreement to acquire approximately 63,000 net acres of leasehold in the southern Permian Basin, primarily in Reagan and Irion Counties, Texas from affiliates of Denver-based Enduring Resources, LLC (Enduring) for $2.5 billion. At closing, the properties are expected to have net production of approximately 16,000 barrels of oil equivalent per day.
The Enduring transaction marks AEPB’s entry into the Permian Basin and the company intends to increase its position in the Permian through additional acquisitions over time. Enduring is currently using four rigs to develop this acreage and AEPB plans to increase operated drilling activity to 6-8 rigs by year end 2015. AEPB plans to drill up to approximately 2,500 gross wells and 1,750 net wells on its acreage over the next decade.
During the past nine months, the AELP platform has raised committed equity and debt capital of approximately $10 billion to fund the development of five play or strategy specific companies: American Energy – Utica, LLC (AEU), American Energy – Woodford, LLC (AEW), American Energy – NonOp, LLC (AENO), American Energy – Marcellus, LLC (AEM), and American Energy – Permian Basin, LLC (AEPB).
AEPB’s lead equity investor is The Energy & Minerals Group (EMG), with additional equity provided by First Reserve Corporation, AEPB’s management team and others. Goldman, Sachs & Co., Tudor, Pickering, Holt & Co. and Citi acted as financial advisors to AEPB. Financing for the acquisition was provided by Goldman Sachs Bank USA. Sullivan & Cromwell LLP, Commercial Law Group, P.C. and Porter Hedges LLP acted as legal advisors to AEPB. Jefferies LLC acted as financial advisor to Enduring and Latham & Watkins LLP acted as legal advisor to Enduring.
About American Energy Partners, LP:
American Energy Partners, LP was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the U.S. For additional information, please visit www.americanenergypartners.com.
About The Energy & Minerals Group:
EMG is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $13.9 billion of regulatory assets under management (RAUM) and approximately $6.5 billion in commitments have been allocated across the energy sector since inception. For additional information, please visit www.emgtx.com.
About First Reserve Corporation:
First Reserve is the largest global private equity firm exclusively focused on energy. First Reserve has offices in Greenwich, CT; Houston; London and Hong Kong. First Reserve has completed more than 475 transactions and its portfolio companies operate in approximately 50 countries and span the energy spectrum from upstream oil and natural gas to midstream and downstream. For additional information, please visit www.firstreserve.com.

 

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