WildFire Energy, which is backed by Kayne Anderson and Warburg Pincus, has agreed to acquire Hawkwood Energy, an exploration and production company focused on developing oil and natural gas resources. No financial terms were disclosed.
DENVER and HOUSTON, July 8, 2021 /PRNewswire/ — Hawkwood Energy LLC (“Hawkwood”), an independent exploration and production company, announced today that is has entered into definitive agreements to be acquired by WildFire Energy I LLC (“WildFire”), an independent energy platform company. The transaction attributes an enterprise valuation to Hawkwood of approximately $650 million. Following the transaction Hawkwood’s existing shareholders will retain a ~50% equity interest in WildFire, alongside ~50% held by WildFire’s management team and private equity sponsor Kayne Anderson.
Hawkwood Energy is an independent exploration and production company focused on economically developing oil and natural gas resources, with current liquids-weighted production of approximately 15,000 gross equivalent barrels per day spanning 160,000 net acres in the Eagle Ford Basin of East Texas. WildFire Energy is an independent energy platform company formed to acquire and optimize production-weighted oil and gas assets, and is led by CEO Anthony Bahr, President/COO Steve Habachy and CFO Drew Cozby. The combined entity will retain the WildFire Energy name. Post-closing, the WildFire team will operate the assets and bring to bear extensive experience in the Eagle Ford, having previously managed WildHorse Resource Development Corp. until its sale to Chesapeake Energy in 2019 for nearly $4 billion.
In addition to pairing a world-class operating team with Hawkwood’s assets, a significant equity investment from Kayne Anderson and WildFire Energy’s management team will substantially de-lever the company. “Enabled by its strong balance sheet, WildFire will actively pursue attractive risk/reward opportunities both through the drill-bit and via accretive acquisitions. We look forward to continuing our partnership with the WildFire team as they enter this next stage,” said Mark Teshoian, Managing Partner at Kayne Anderson.
“We are proud of what Hawkwood has accomplished since entering the Eagle Ford and believe that joining with WildFire is the next logical step in our evolution,” said Jim Addison, CEO of Hawkwood. “We are impressed by the team’s extensive knowledge of and experience in this basin and are excited for the opportunities that lay ahead.”
“We look forward to leveraging our prior experience as neighbors to Hawkwood to
continue the team’s track record of efficient, profitable operations,” said Anthony Bahr, CEO of WildFire. “The improving environment for oil and gas presents exciting opportunities for WildFire and we are pleased to have the backing of our sponsors to go pursue them.”
The transaction is expected to close in the third quarter of 2021.
About Hawkwood Energy
Hawkwood Energy is an independent exploration and production company focused on economically developing oil and natural gas resources in East Texas. Based in Denver, Hawkwood was founded in 2012 with a line-of-equity commitment from lead investors Warburg Pincus and Ontario Teachers’ Pension Plan. Hawkwood entered East Texas in 2014, since then accumulating over 160,000 net acres of high quality, contiguous Eagle Ford acreage. Today Hawkwood operates approximately 360 wells with gross production of approximately 15,000 boe/d. Hawkwood was ranked by Hart Energy’s Oil & Gas Investor (July 2019) as a top 100 private E&P and the #3 private Operator in the Eagle Ford play in terms of production.
About WildFire Energy
WildFire Energy is an independent energy platform company pursuing production-weighted oil and gas assets in onshore US basins, seeking to efficiently optimize and develop reserves using modern technologies and its extensive operating experience. WildFire Energy was formed in 2019 with funding from Warburg Pincus, Kayne Anderson, and management.