Hawkwood Energy, an independent exploration and production company, announced that it is to be acquired by Houston-based WildFire Energy I LLC, 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, the company said in a statement.
Hawkwood Energy is 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 was 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," said Mark Teshoian, managing partner at Kayne Anderson. "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," he added.
"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.
