Simpson Thacher Represents Bank of Montreal in Acquisition Financing in Connection With Ensign’s Acquisition of Eagle Ford Acreage From Pioneer
05.08.19
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Simpson Thacher represented BMO Capital Markets, as joint lead arranger, and BMO Harris Bank, as administrative agent, in connection with the acquisition financing for Ensign Natural Resources LLC’s announced acquisition of approximately 59,000 net acres from Pioneer Natural Resources USA, Inc. located in the Eagle Ford Shale in South Texas. The transaction includes net acreage in Bee, DeWitt, Karnes, Lavaca and Live Oak Counties and current net production of approximately 14,400 barrels of oil equivalent per day. Pioneer will receive up to $475 million in total proceeds, of which $25 million was received at closing and the remaining $450 million is payable in an earnout structure contingent on commodities prices.
Ensign is an exploration and production company operating in the Eagle Ford Shale in South Texas and was formed in late 2017 in partnership with Warburg Pincus. As part of this transaction, Ensign has also secured an equity commitment from the Kayne Private Energy Income Funds.
The Simpson Thacher team included Erland Modesto, Robert Rabalais, Andrew Lanius and Nathan Lawson (Banking and Credit); Andrew Blau and Alyssa Ohanian (ECEB); Nicole Humphrey (Tax); and Mike Isby (Environmental).