PE firm Riverstone Holdings to sell Rock Oil to SM Energy for $980 mn
09 August 2016
Energy and power industry focused private equity firm Riverstone Holdings yesterday struck a deal to sell US-based oil and gas explorer Rock Oil Holdings to SM Energy Co, for $980 million in cash.
Riverstone Holdings' British subsidiary, Riverstone Energy Ltd, said that it would realise cash proceeds of $237 million from the sale.
The deal will give Denver-based SM Energy 24,783 net acres in Howard County, West Texas, which will expand its Midland Basin footprint to approximately 46,750 net acres.
The acquired acreage position is largely contiguous and includes approximately 4,900 Boe per day net production and 6 MMBoe of proved developed producing reserves.
''We are demonstrated leaders in operational performance in the Midland Basin, and we have been looking for some time to expand our asset base, in the right location under the right terms. This is a negotiated transaction for assets in Howard County, a region of the Midland Basin that is emerging as a top tier area for well performance,'' said, Jay Ottoson, president and CEO of SM Energy.
"We are very pleased by the successful execution of our stated strategy of building and developing a concentrated position in the core of a leading North American producing basin. Our ability to drive value in a challenging commodity price environment is a testament to the quality and technical expertise of the Rock Oil team and our strong and supportive working relationship with Riverstone,'' said, Kyle Miller, chairman and CEO of Rock Oil.