Kayne Anderson-backed Valorem Energy buys LINN Energy’s Williston Basin interests

Valorem Energy, which is backed by Kayne Anderson, has acquired LINN Energy‘s Williston Basin interests. The price of the transaction was $285 million. JP Morgan Chase Bank, N.A., Citigroup Global Markets, Inc. and Wells Fargo Securities arranged debt financing to Valorem on the acquisition.


OKLAHOMA CITY–(BUSINESS WIRE)–Valorem Energy, LLC, and certain wholly-owned subsidiaries (“Valorem” or the “Company”), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Fund, L.P., announced that it has closed on its acquisition of LINN Energy, Inc.’s (“LINN” or the “Seller”) Williston Basin interests for a purchase price of $285 million, subject to customary purchase price adjustments.

The acquired assets consist of approximately 20,000 net acres in North Dakota, South Dakota and Montana with estimated third quarter net production of 8,750 barrels of oil equivalent per day. The sale has an effective date of March 1, 2017.

“We are excited to announce our first acquisition since forming Valorem earlier this year. I am very proud of the team’s accomplishments thus far, and we are thrilled to own such high-quality assets. We believe this acquisition provides us with an initial building block to our long-term strategy of operating large oil and gas assets and achieving superior returns for our investors,” commented Justin Cope, Chief Executive Officer of Valorem.

Danny Weingeist, Managing Partner at Kayne Anderson, said, “We are proud of the Valorem team and believe the assets are a great fit for both Valorem’s and the Fund’s strategies. We look forward to working with Valorem to deploy additional capital.”

JP Morgan Chase Bank, N.A., Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC acted as joint lead arrangers on Valorem’s debt financing for the acquisition. In addition, Vinson & Elkins L.P. provided legal counsel, Mobius Risk Group served as marketing and derivatives advisor and Opportune LLP provided due diligence and integration assistance to Valorem.

Founded in 2017, Valorem is a private exploration and production company formed to deploy over $1 billion of capital to acquire and operate large, producing onshore U.S. oil and gas assets, with an emphasis on the Rockies and Mid-Continent.

For more information, please visit www.valorem-energy.com.

Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson” or the Firm”), founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy and infrastructure, specialized real estate, growth equity and both private credit and diversified liquid credit. Kayne Anderson manages approximately $25 billion in assets and employs over 300 professionals in eight offices across the U.S.

The Kayne Private Energy Income Fund, L.P. (the “Fund”) is part of Kayne Anderson’s successful energy private equity practice that has raised over $8 billion since 1998. The Fund was formed in mid-2014 to take advantage of the market opportunity to acquire and develop large, long-life producing oil and gas assets in North America.

The Firm is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta and Boca Raton.

For more information, please visit www.kaynecapital.com.