Linn, Citizen Energy form Roan Resources
Linn Energy Inc. has signed an agreement with Citizen Energy II LLC in which LINN and Citizen will each contribute certain upstream assets in Oklahoma to a newly formed company, Roan Resources LLC, focused on the accelerated development of the Merge/SCOOP/STACK play in the Anadarko Basin. LINN and Citizen will each contribute approximately 70,000 net acres to Roan for an equally split equity interest. The contributed properties include acreage in Canadian, Carter, Cleveland, Garvin, Grady, Kingfisher, McClain, and Stephens counties. Linn and Citizen are currently operating a combined total of five rigs in the Merge with plans to drill 58 gross wells combined in 2017. Combined production was more than 20,000 BOE/d as of May 2017 and at current rig pace is forecast to have an exit rate of more than 40,000 BOE/d by the end of 2017, with additional growth expected. The company anticipates an initial public offering in early 2018, subject to market conditions. Linn retains its majority operated position of approximately 105,000 net acres in the NW STACK and its Chisholm Trail midstream business, including a 250 MMcf/d capacity cryogenic plant that is currently under construction, and the Linn contributed acreage in the agreement remains dedicated to Chisholm Trail. Roan will have independent management and a separate board of directors comprised of four LINN designated directors, four Citizen designated directors and a to-be-appointed CEO who will be jointly designated by Linn and Citizen. Jefferies LLC acted as sole financial advisor, and Latham & Watkins LLP acted as legal advisor, to Linn for the transaction. Citigroup acted as sole financial advisor, and Thompson & Knight LLP acted as legal advisor, to Citizen for the transaction.
Silverback Exploration II forms with $500M equity commitment from EnCap
San Antonio, TX-based Silverback Exploration II LLC has secured an initial equity commitment of $500 million from EnCap Investments LP. Silverback II was formed by the same team that led its predecessor company, Silverback Exploration LLC (Silverback I), which was also backed by EnCap. Silverback I developed a position in the heart of the Delaware Basin, which was sold in December 2016 to Centennial Resource Development Inc. and its affiliates for $855 million. Silverback II was formed to pursue organic development projects and strategic acquisitions in conventional and unconventional resource plays across the US and is led by the Silverback I management team. Silverback II was advised by the Fort Worth office of Kelly Hart & Hallman. EnCap was advised by Thompson & Knight LLP.