Valorem Energy, LLC, and certain wholly-owned subsidiaries, an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Fund, L.P., announced that it has closed on its acquisition of LINN Energy, Inc.’s (“LINN” or the “Seller”) Williston Basin interests for a purchase price of $285 million, subject to customary purchase price adjustments.
“We are proud of the Valorem team and believe the assets are a great fit for both Valorem’s and the Fund’s strategies. We look forward to working with Valorem to deploy additional capital.”
The acquired assets consist of approximately 20,000 net acres in North Dakota, South Dakota and Montana with estimated third quarter net production of 8,750 barrels of oil equivalent per day. The sale has an effective date of March 1, 2017.
“We are excited to announce our first acquisition since forming Valorem earlier this year. I am very proud of the team’s accomplishments thus far, and we are thrilled to own such high-quality assets. We believe this acquisition provides us with an initial building block to our long-term strategy of operating large oil and gas assets and achieving superior returns for our investors,” commented Justin Cope, Chief Executive Officer of Valorem.
Danny Weingeist, Managing Partner at Kayne Anderson, said, “We are proud of the Valorem team and believe the assets are a great fit for both Valorem’s and the Fund’s strategies. We look forward to working with Valorem to deploy additional capital.”
JP Morgan Chase Bank, N.A., Citigroup Global Markets, Inc. and Wells Fargo Securities, LLC acted as joint lead arrangers on Valorem’s debt financing for the acquisition. In addition, Vinson & Elkins L.P. provided legal counsel, Mobius Risk Group served as marketing and derivatives advisor and Opportune LLP provided due diligence and integration assistance to Valorem.
