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Structured Finance and Production Payments

The growth of the commodity and interest rate derivatives markets has opened new doors for the monetization of oil and gas reserves. Thompson & Knight has been on the forefront of oil and gas financing structures for more than 80 years and continues to be a leader in the specialized area of volumetric production payments as an alternative to traditional reserve-based debt financing.

Overview

The growth of the commodity and interest rate derivatives markets has opened new doors for the monetization of oil and gas reserves. Thompson & Knight has been on the forefront of oil and gas financing structures for more than 80 years and continues to be a leader in the specialized area of volumetric production payment financing.

Our clients include major investment banks, commercial banks, insurance companies and energy companies.

Ranked among the top firms in Texas for Banking and Finance in Chambers USA 2020 by Chambers and Partners

National ranking for Banking and Finance Law in “Best Law Firms” 2020 by U.S. News-Best Lawyers®

Experience

  • Represented a physical commodity merchant in connection with the structuring and purchase of a $119 million volumetric production payment, involving production from almost 1,000 wells located in the San Juan Basin in New Mexico and Colorado
  • Represented a major international investment bank and institutional securities firm, as investment advisor to the seller, in multiple volumetric production payment transactions totaling several billion dollars for one of the largest producers of natural gas in the United States
  • Represented an institutional purchaser of a $190 million volumetric production payment
  • Represented a privately held oil and gas exploration and production company, as purchaser, in connection with a $120 million volumetric production payment
  • Represented the lead bank in connection with a $119 million volumetric production payment
  • Represented a privately-held oil and gas exploration and production company, as seller, in connection with a $45 million volumetric production payment
  • Represented an institutional purchaser of a $34 million volumetric production payment from a privately-held oil and gas exploration and production company