Finance - Equity
Common units representing limited liability company interests will be issued to Eagle Rock’s unitholders as merger consideration. The transaction is scheduled to close Oct. 8.
The private-equity firm focuses on investments between $25 million and $75 million for upstream, midstream and services sectors. Kirkland & Ellis LLP was the fund formation counsel.
Proceeds will repay all outstanding credit facility borrowings, which were partly used to finance recent acquisitions. J.P. Morgan and Credit Suisse are joint book-running managers.
Proceeds will be used to accelerate the continued development of the Plano, Texas-based company's assets and provide additional liquidity for operations.
Through a combination of cash, revolver and proceeds for the sale of its midstream assets—acquired from Royal Dutch Shell—Sanchez’s liquidity will shoot to more than $900 million.
There are about 30.9 million issued and outstanding shares. Total may purchase about 1.5 million shares (5% of the total) between Sept. 30 of this year and Sept. 29, 2016.
Purchases under the program would be funded from available working capital, and purchased units would be held by Dominion or another subsidiary. Units will be purchased over next 12 months.
The Houston company said it plans to use the capital to acquire and develop oil and gas terminaling and transportation assets, with an initial focus on the Gulf Coast.
Parsley said Sept. 17 it is acquiring 1,908 net Permian acres as part of a $39 million acquisition in Reagan and Upton counties, Texas.
Trans European will have a portfolio of conventional onshore European oil and gas properties. It will also focus on EOR techniques. Star Energy, founded in 1999, was acquired by Petronas in 2008.
The company will acquire 45,121 net Cotton Valley acres, pushing its total holdings past 190,000 net acres. The company plans to fund the deal through an equity offering.
Analysts say a successful stock offering by Parsley may whet the appetite of E&Ps that need money at a time when more capital will extend the recovery.