Blackstone (NYSE:BX) (“Blackstone”) today announced that funds managed by Blackstone Energy Partners L.P. have entered into a strategic 50/50 partnership with Sanchez Energy Corporation (NYSE:SN) (“Sanchez”) to acquire Anadarko Petroleum Corporation’s (NYSE: APC) (“Anadarko”) working interest in approximately 318,000 gross acres in the Western Eagle Ford for approximately $2.3 billion.
New York, January 12, 2017. Blackstone (NYSE:BX) (“Blackstone”) today announced that funds managed by Blackstone Energy Partners L.P. have entered into a strategic 50/50 partnership with Sanchez Energy Corporation (NYSE:SN) (“Sanchez”) to acquire Anadarko Petroleum Corporation’s (NYSE: APC) (“Anadarko”) working interest in approximately 318,000 gross acres in the Western Eagle Ford for approximately $2.3 billion.
"We are very pleased to acquire – in partnership with Sanchez Energy, a uniquely positioned and best-in-class Eagle Ford operator – these world-class Eagle Ford oil and gas shale assets from Anadarko. Our experience and success in investing in the oil and gas sector and the Eagle Ford Shale and our strategic partnership with Sanchez gives us confidence that this investment will be successful. We look forward to building upon our partnership with Sanchez through this acquisition and to continue to grow through future acquisitions in this part of the basin,” said Angelo Acconcia, a Senior Managing Director at Blackstone Energy Partners who oversees their oil and gas investments.
The acquired assets (155,000 net acres to Sanchez Energy and Blackstone) are primarily located in Dimmit and Webb counties, contiguous to Sanchez’s existing assets. Sales volumes from these properties totaled approximately 45,000 barrels of liquids per day and approximately 131 million cubic feet of natural gas per day at the end of the fourth quarter of 2016. The acreage includes approximately 130 gross drilled but uncompleted wells, which will drive initial production growth.
“This transaction and partnership with Sanchez is illustrative and consistent with our history and focus on partnering with oil and gas companies to help effectuate strategic transactions and provide the growth capital to realize the long-term value associated with the company’s assets,” added Acconcia.
“We are excited to be in a 50/50 partnership with Blackstone Energy Partners, who we partnered with here given their unique ability to provide a large scale, customized financial solution, their best in class reputation in the energy industry and who will work collaboratively with us to support the Company and facilitate future growth,” said Tony Sanchez, III, Chief Executive Officer of Sanchez Energy.
“Our extensive experience over the last two decades as an investor across all segments of the energy sector, access to equity and debt capital on a very large scale and a history of creative, flexible solutions to complex challenges, make Blackstone a uniquely well positioned partner for energy companies seeking to fund their continued growth through the inherent volatility and capital intensive nature of the energy industry,” added David Foley, Chief Executive Officer, Blackstone Energy Partners. “Our partnership with Sanchez Energy provides capital for the continued development of this acreage, creating additional jobs for American workers and providing significant benefits to the economy.”
The transaction is expected to close in the first quarter of 2017.
Kirkland & Ellis served as legal advisor and Jefferies & Company, Inc. served as the sole financial advisor to Blackstone. JPMorgan Chase & Co., Citigroup Inc. and Morgan Stanley are providing committed debt financing to back Blackstone’s working interest purchase.
About Blackstone Energy Partners
Blackstone Energy Partners is Blackstone's energy-focused private equity business, with a successful record built on our industry expertise and partnerships with exceptional management teams. Blackstone has invested over $10 billion of private equity globally across a broad range of sectors within the energy industry.
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies in which we invest, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $360 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at china.blackstone.com. Follow Blackstone on Twitter @Blackstone.
About Sanchez Energy Corporation
Sanchez Energy Corporation (NYSE: SN) is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle Ford Shale in South Texas where they have assembled over 200,000 net acres, and the Tuscaloosa Marine Shale. For more information about Sanchez Energy Corporation, please visit their website: www.sanchezenergycorp.com.
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