Ontario Teachers’ Pension Plan, RedBird Capital Partners, and Aethon Energy Management acquired upstream and midstream oil and gas assets from J-W Energy. Located in northeast Texas and north Louisiana, these will be combined with Haynesville and Rockies assets acquired by Aethon and Redbird to form a join partnership called Aethon United.
DALLAS, Aug. 8, 2016 /PRNewswire/ — Ontario Teachers’ Pension Plan (“Ontario Teachers'” or “OTPP”) RedBird Capital Partners (“RedBird”), and Aethon Energy Management (“Aethon”) today announced the acquisition of J-W Energy’s (“J-W”) oil & gas upstream and midstream assets located in northeast Texas and north Louisiana. Additionally, Haynesville and Rockies assets acquired in partnership by Aethon and Redbird are being consolidated with the J-W assets, forming a joint partnership (“Aethon United”).
Located in north Louisiana and northeast Texas, the J-W Energy assets comprise approximately 84,000 net acres and 380 miles of associated gathering and processing infrastructure. The collective reserve base of the J-W assets combines low risk, long life, and highly predictable production with attractive development opportunities.
With this acquisition, Aethon United now operates in excess of 350,000 net acres and 166 MMcfe/d of production. In addition to the J-W Energy assets, Aethon United operates approximately 91,000 net acres in the Haynesville previously acquired from SM Energy and Noble Energy, as well as approximately 181,000 net acres in the Wind River Basin of Wyoming previously acquired from Encana.
Albert Huddleston, Founder & Managing Partner of Aethon, commented, “We are excited to partner with Ontario Teachers’ and continue our long-standing partnership with RedBird to acquire J-W Energy’s high quality, low risk, unconventional assets, which continues to expand our acreage in the Arkansas-Louisiana-Texas area. The J-W Energy assets help to diversify and expand our existing portfolio, and highlights Aethon’s ability to identify attractive E&P assets, offering strong risk-adjusted returns in the current market environment and in the future. We are grateful for the confidence shown in the Aethon Energy team for the series of investments in partnership with us by noted investors OTPP and RedBird, which ratifies our 26 year track record.”
“We are looking forward to partnering with Aethon, a proven firm with an exceptional track record and strong alignment with Ontario Teachers’, as well as expanding our strategic relationship with RedBird,” said Jane Rowe, Senior Vice President of Teachers’ Private Capital. “These assets are a strong fit with our private equity energy portfolio and represent a compelling investment opportunity with an established base of long-life proven reserves and attractive growth opportunities.”
“Aethon has been a tremendous partner with RedBird in the build-up of our collective energy investments, and we’re excited to expand this partnership with our friends at Ontario Teachers’ with whom we have a very strong strategic relationship,” said Hunter Carpenter, Partner at RedBird Capital. “This partnership is an example of RedBird’s unique ability to identify proven owners and entrepreneurs like Aethon Energy who are frequently unavailable to traditional institutional capital. Aethon Energy represents a rare combination of investing and operating expertise providing superior historical performance and operating skill.”
About Aethon Energy Management
Aethon Energy Management LLC is a Dallas-based private investment firm that has managed and operated over $1.6 billion of assets, and is focused on direct investments in North American onshore oil & gas. Since its inception in 1990, Aethon has maintained a focus on acquiring under-appreciated assets where opportunities exist to add value through lower-risk development, operational enhancements and Aethon’s proprietary technical knowledge. Aethon’s 26-year track record spans multiple energy cycles and has consistently provided compelling asymmetric returns for its institutional and high net worth investors through disciplined buying and value creation. For more information, go to www.AethonEnergy.com.
About Ontario Teachers’
The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with $171.4 billion in net assets at December 31, 2015. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.3% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 316,000 active and retired teachers. For more information, visit www.Otpp.com and follow us on Twitter @OtppInfo.
About RedBird Capital Partners
RedBird Capital Partners is a North America based principal investment firm focused on providing flexible, long-term capital to help entrepreneurs grow their businesses. Based in New York and Dallas, RedBird seeks investment opportunities in growth-oriented private companies in which its capital, investor network and strategic relationships can help prospective business owners achieve their corporate objectives. RedBird’s private equity platform connects patient capital with business founders and entrepreneurs to help them outperform operationally, financially and strategically. For more information, go to www.RedBirdCap.com.