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Aethon Energy Closes Acquisition of QEP Resources' Northwest Louisiana Natural Gas Assets.

M2 EQUITYBITES-January 16, 2019-Aethon Energy Closes Acquisition of QEP Resources' Northwest Louisiana Natural Gas Assets


16 January 2019 - US-based private investment firm and onshore oil and gas asset operator Aethon Energy Management has closed its acquisition of natural gas assets from wholly owned subsidiaries of US-based crude oil and natural gas exploration and production company QEP Resources, Inc. (NYSE: QEP), the firm said.

The assets are located in the Haynesville basin in northwest Louisiana. The sale price is USD 735m.

The QEP assets comprise approximately 49,700 net acres and 607 operated wells of natural gas producing properties and undeveloped acreage in the Haynesville.

Aethon III also acquired all of QEP's associated gas gathering and treating systems related to these assets, supporting up to 600 MMcfe/d of production.

The collective reserve base of QEP's assets combines low risk, long life, and highly predictable production with attractive development opportunities.

With the addition of the QEP assets, Aethon and its affiliates operate in excess of 455,000 net acres and 650 MMcfe/d of net production in the Haynesville region and other previously acquired regions in the Wind River basin of Wyoming.

Aethon is the operator of more than 2,650 producing wells and employs approximately 220 professionals.

QEP Resources, Inc. (NYSE: QEP) is an independent crude oil and natural gas exploration and production company with operations in two regions of the United States: the Southern Region (primarily Texas and Louisiana) and the Northern Region (primarily North Dakota).

Aethon Energy Management LLC is a Dallas-based private investment firm formed in 1990 that has managed and operated over USD2.5 bn of assets, and is focused on direct investments in North American onshore oil and gas. Aethon III is an investment vehicle formed to acquire onshore assets in North America in partnership with the Ontario Teachers' Pension Plan and RedBird Capital Partners.

In connection with the transaction BMO Capital Markets acted as financial advisor, Weil, Gotshal and Manges LLP served as corporate legal counsel, and Sidley Austin LLP served as finance legal counsel to Aethon. Latham and Watkins LLP served as legal counsel to QEP.

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Publication:M2 EquityBites (EQB)
Geographic Code:1U7LA
Date:Jan 16, 2019
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