Aethon Energy Management LLC and RedBird Capital Partners LLC have acquired certain Ark-LA-Tex assets from SM Energy Company. No financial terms were disclosed. Evercore Partners Inc served as financial advisor to RedBird on the transaction.
Aethon Energy Management LLC (“Aethon”), a Dallas-based private investment firm focused on onshore oil & gas, together with its partner, RedBird Capital Partners LLC (“RedBird”), today announced the acquisition of certain Ark-LA-Tex assets from SM Energy Company (NYSE: SM). Terms of the negotiated transaction were not disclosed.
SM Energy’s Ark-LA-Tex assets comprise approximately 76,300 net acres with current net production of 29 MMcfe/d, 98 percent of which is gas. With this acquisition purchased in partnership with RedBird, Aethon now manages assets in the Ark-LA-Tex area producing approximately 56 MMcfe/d. The collective reserve base is low risk, long life, and cash producing with considerable upside optionality.
Aethon was founded in 1990 by Albert Huddleston to acquire and develop onshore oil & gas assets in North America. The Firm is led by a team of veteran oil & gas professionals with significant operational experience across North America. Aethon has a long track record of best-in-class operations in an environmentally responsible manner.
Aethon Founder and Partner, Albert Huddleston, commented, “This is an exciting opportunity to further expand our asset base in the Ark-LA-Tex region and specifically the Haynesville play. This acquisition offers attractive economics and is accretive to our existing portfolio. We are thrilled to be partnering for a second time with RedBird, and we are looking forward to working together to leverage our shared experience to create meaningful value for our investors. Our partnership is well-positioned to capitalize on already-identified opportunities to drive returns and improve operations while continuing to control costs.”
“With this acquisition, we are pleased to continue our partnership with Aethon and look forward to participating in the continued expansion of our collective reserve base,” said RedBird Partner, Hunter Carpenter. “Aethon continues to demonstrate their experience in sourcing assets and applying industry-leading expertise to realize significant production growth.”
Weil Gotshal & Manges LLP and Ringet & Collier, P.L.C. served as legal counsel to Aethon. Gardere Wynne Sewell LLP served as legal counsel to RedBird. RedBird’s financial advisor was Evercore Partners Inc.
About Aethon Energy
Aethon Energy Management LLC is a Dallas, Texas-based private investment firm that has managed over $1.0 billion in AUM and is focused on direct investments in North American onshore oil & gas assets. Since its inception in 1990, Aethon has maintained a focus on acquiring underappreciated assets where opportunities exist to add value through lower risk development, operational enhancements, and Aethon’s proprietary technical knowledge. Aethon’s 25-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 RedBird Capital Partners
RedBird Capital Partners LLC is a New York and Dallas based principal investment firm focused on providing flexible, long-term capital in growth equity, build-up, and structured equity investments to help entrepreneurs grow their businesses. RedBird seeks investment opportunities in growth-oriented private companies in which its capital, investor network, and strategic relationships can help prospective business owners outperform operationally, financially and strategically by virtue of RedBird’s involvement. For more information, go to www.RedBirdCap.com.