HOUSTON, June 9, 2014: Porter Hedges represented affiliates of American Energy Partners, LP (AELP) in the acquisition of shale acreage in the Marcellus, Utica and Permian Basin in three separate transactions with a combined acquisition price of $4.25 billion.
AEPB Acquires $2.5 billion in Permian Basin acreage from Enduring
American Energy – Permian Basin, LLC (AEPB), an affiliate of AELP, signed an agreement to acquire approximately 63,000 net acres of leasehold in the southern Permian Basin, primarily in Reagan and Irion Counties, Texas from affiliates of Denver-based Enduring Resources, LLC (Enduring) for $2.5 billion. At closing, the properties are expected to have net production of approximately 16,000 barrels of oil equivalent per day.
The Enduring transaction marks AEPB’s entry into the Permian Basin and the company intends to increase its position in the Permian through additional acquisitions over time.
The Porter Hedges team was led by partner Jeremy Mouton with assistance from Corey Brown, Mac Marshall, Deborah Ko, and Brian Rose.
AEU and AEM Acquire $1.75 billion in Utica and Marcellus Acreage
American Energy – Utica, LLC (AEU), an affiliate of AELP, signed an agreement to acquire approximately 27,000 net acres of leasehold in Monroe County, Ohio, from East Resources, Inc. and an unnamed private company. At closing, the properties are expected to have net production of approximately 40 million cubic feet of natural gas equivalent per day.
In addition, American Energy – Marcellus, LLC (AEM), announced that it has signed an agreement to acquire approximately 48,000 net acres of leasehold in Doddridge, Harrison, Marion, Tyler and Wetzel Counties, West Virginia, also from East Resources, Inc. and an unnamed private company. At closing, the properties are expected to have net production of approximately 135 million cubic feet of natural gas equivalent per day.
The combined acquisition price of the transactions is $1.75 billion. The Utica acquisition marks AEU’s seventh major acquisition in the southern Utica Shale play, and the Marcellus acquisition marks AEM’s entry into the southern Marcellus Shale play.
The Porter Hedges team was led by partner Jeremy Mouton with assistance from Mac Marshall, Deborah Ko, and Denny Ng.
AELP was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the U.S. For additional information on both of these transactions, please see AELP press releases here.
American Energy - UTICA, LLC and American Energy - Marcellus, LLC Announce Closing of UTICA and Marcellus Acquisitions, $250 Million of Convertible Subordinated Notes and $1.2 Billion of Term Loans
American Energy - Permian Basin, LLC Announces Closing of Permian Basin Acquisition and $1.6 Billion Senior Notes Offering
"AEPB Closes Acquisition and Notes Offering," Oil&Gas Financial Journal
"American Energy - Permian Basin, LLC Announces Closing Of Permian Basin Acquisition And $1.6 Billion Senior Notes Offering," MarketWatch
“Shale Mania a Boon to a Half-Dozen Firms,” The American Lawyer
“Porter Hedges Leads Two Aubrey McClendon Shale Deals for $4.25 Billion,” Texas LawBook
“American Energy Partners Drops $4B For Shale Stakes,” Law360
"$2.5 Billion Deal for Permian Basin Energy Assets, " Texas Lawyer