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E&P Asset Divestiture

Client Description

Our client was a private company with a highly coveted, concentrated acreage position in an emerging shale play. The position was built through an organic leasing program and had been developed to the point where its resource potential was proven.

Objective

The company had drilled numerous wells across its position and installed the infrastructure necessary for full field development. They desired to monetize this asset via a cash sale to fund the capital requirements for less developed properties, which were retained.              

Transaction Process

Simmons & Company International conducted a broad marketing process, contacting over 250 potential acquirers to achieve the company's primary goal of maximizing the transaction value.  We provided assistance throughout the diligence process, including hosting numerous data room presentations, answering diligence questions, analyzing bid proposals and negotiating the definitive agreements.

Transaction Outcome

The assets were sold for cash at a market leading valuation to a strategic buyer. A number of competitive proposals were received, however, the buyer had existing properties in the area and was willing to pay a premium for our client's assets.