Metalmark Capital has agreed to partner with Northeast Natural Energy on a joint venture to pursue natural gas drilling, exploration and acquisition in the Marcellus Share. No financial terms were disclosed.
Northeast Natural Energy, LLC (“NNE”) announced today that it has entered into a partnership agreement with Metalmark Capital to pursue natural gas drilling, exploration, acquisition and joint-venture opportunities in the Marcellus Shale (“Marcellus”), one of the most prolific natural gas shale plays in North America located primarily in Pennsylvania, West Virginia, and New York. Metalmark and NNE management will each be making substantial equity commitments to fund the operations and support the growth of NNE.
NNE is led by its Founder and President, Mike John, who previously served as Vice President of Operations of the Eastern Division for Chesapeake Energy (NYSE: CHK), where he oversaw Chesapeake’s Marcellus activity from 2005 to 2009. Prior to joining Chesapeake Energy, Mr. John was a senior executive occupying various roles at Triana Energy (Metalmark principals’ first investment with the founding executives of NNE) and Columbia Natural Resources. The other founding executives of NNE, John Adams, Mark Williams and Jo Ellen Yeary, all worked together previously at Triana Energy and Columbia Natural Resources. Mr. Adams also worked at Chesapeake Energy from 2005 to 2009, where he was the Director of Reservoir Engineering for the Eastern Division.
“We are pleased to continue our longstanding relationship with Metalmark and pursue the attractive opportunities that exist in the Marcellus,” said John. “Our team possesses an enormous amount of expertise regarding the Marcellus Shale along with considerable knowledge pertaining to the entire Appalachian Basin, given our experience at Chesapeake Energy, Triana Energy, and Columbia Natural Resources. We are well positioned to partner with others or acquire acreage and assets given our deep understanding of the sector and strong financial backing from Metalmark.”
“Consistent with our strategy of backing successful management teams over many years and different platforms, we are delighted to have the opportunity to continue our relationship with Mike John and the NNE team,” added Howard Hoffen, Chairman and CEO of Metalmark. “Mike has proven his ability over many years to build new businesses with substantial scale and scope. We look forward to capitalizing on the substantial opportunities available in the Marcellus.”
About Northeast Natural Energy
Northeast Natural Energy, LLC, headquartered in Charleston, WV, is a private oil and gas company focused on the natural gas drilling, exploration, acquisition and joint-venture opportunities in the Marcellus Shale. The principals of NNE have worked together in various capacities for over 20 years and possess a significant amount of knowledge and operational expertise in the Appalachian Basin, in particular the Marcellus Shale formation.
For more information, please visit www.northeastnaturalenergy.com.
About Metalmark Capital
Metalmark Capital is a leading private equity firm whose principals have a long track record of successful investing in targeted sectors, with particular focus and competence in energy and natural resources, industrials and healthcare. Metalmark Capital seeks to build long-term value through active and supportive partnerships with the companies and management teams in which they invest. Metalmark Capital is an investment center of Citi Capital Advisors.
For more information, please visit www.metalmarkcapital.com.