Blackstone Energy Partners and Sanchez Energy Announce Acquisition of Anadarko’s Eagle Ford Acreage
January 12 2017 - 5:39PM
Business Wire
Blackstone (NYSE:BX) (“Blackstone”) today announced that funds
managed by Blackstone Energy Partners L.P. have entered into a
strategic 50/50 partnership with Sanchez Energy Corporation
(NYSE:SN) (“Sanchez”) to acquire Anadarko Petroleum Corporation’s
(NYSE:APC) (“Anadarko”) working interest in approximately 318,000
gross acres in the Western Eagle Ford for approximately $2.3
billion.
"We are very pleased to acquire – in partnership with Sanchez
Energy, a uniquely positioned and best-in-class Eagle Ford operator
– these world-class Eagle Ford oil and gas shale assets from
Anadarko. Our experience and success in investing in the oil and
gas sector and the Eagle Ford Shale and our strategic partnership
with Sanchez gives us confidence that this investment will be
successful. We look forward to building upon our partnership with
Sanchez through this acquisition and to continue to grow through
future acquisitions in this part of the basin,” said Angelo
Acconcia, a Senior Managing Director at Blackstone Energy Partners
who oversees their oil and gas investments.
The acquired assets (155,000 net acres to Sanchez Energy and
Blackstone) are primarily located in Dimmit and Webb counties,
contiguous to Sanchez’s existing assets. Sales volumes from these
properties totaled approximately 45,000 barrels of liquids per day
and approximately 131 million cubic feet of natural gas per day at
the end of the fourth quarter of 2016. The acreage includes
approximately 130 gross drilled but uncompleted wells, which will
drive initial production growth.
“This transaction and partnership with Sanchez is illustrative
and consistent with our history and focus on partnering with oil
and gas companies to help effectuate strategic transactions and
provide the growth capital to realize the long-term value
associated with the company’s assets,” added Acconcia.
“We are excited to be in a 50/50 partnership with Blackstone
Energy Partners, who we partnered with here given their unique
ability to provide a large scale, customized financial solution,
their best in class reputation in the energy industry and who will
work collaboratively with us to support the Company and facilitate
future growth,” said Tony Sanchez, III, Chief Executive Officer of
Sanchez Energy.
“Our extensive experience over the last two decades as an
investor across all segments of the energy sector, access to equity
and debt capital on a very large scale and a history of creative,
flexible solutions to complex challenges, make Blackstone a
uniquely well positioned partner for energy companies seeking to
fund their continued growth through the inherent volatility and
capital intensive nature of the energy industry,” added David
Foley, Chief Executive Officer, Blackstone Energy Partners. “Our
partnership with Sanchez Energy provides capital for the continued
development of this acreage, creating additional jobs for American
workers and providing significant benefits to the economy.”
The transaction is expected to close in the first quarter of
2017.
Kirkland & Ellis served as legal advisor and Jefferies &
Company, Inc. served as the sole financial advisor to Blackstone.
JPMorgan Chase & Co., Citigroup Inc. and Morgan Stanley are
providing committed debt financing to back Blackstone’s working
interest purchase.
About Blackstone Energy Partners
Blackstone Energy Partners is Blackstone's energy-focused
private equity business, with a successful record built on our
industry expertise and partnerships with exceptional management
teams. Blackstone has invested over $10 billion of private equity
globally across a broad range of sectors within the energy
industry.
Blackstone is one of the world’s leading investment firms. We
seek to create positive economic impact and long-term value for our
investors, the companies in which we invest, and the communities in
which we work. We do this by using extraordinary people and
flexible capital to help companies solve problems. Our asset
management businesses, with over $360 billion in assets under
management, include investment vehicles focused on private equity,
real estate, public debt and equity, non-investment grade credit,
real assets and secondary funds, all on a global basis. Further
information is available at www.blackstone.com. Follow Blackstone
on Twitter @Blackstone.
About Sanchez Energy Corporation
Sanchez Energy Corporation (NYSE:SN) is an independent
exploration and production company focused on the acquisition and
development of unconventional oil and natural gas resources in the
onshore U.S. Gulf Coast, with a current focus on the Eagle Ford
Shale in South Texas where they have assembled over 200,000 net
acres, and the Tuscaloosa Marine Shale. For more information about
Sanchez Energy Corporation, please visit their website:
www.sanchezenergycorp.com.
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BlackstonePaula Chirhart, +1-212-583-5011Public
Affairspaula.chirhart@blackstone.com