ArcLight Sells Long-time San Juan Operator LOGOS in $400 Million Deal

Private-equity fund North Hudson Resource Partners LP purchased San Juan Basin operator LOGOS Resources II LLC from affiliates of ArcLight Capital Partners LLC for $402 million, according to a North Hudson news release.

LOGOS’ net production averages 106 MMcfe/d across a 230,000 net-acre position in the San Juan Basin of New Mexico and Colorado. The company recently commenced its 2022 drilling program and anticipates increasing net production to about 130 MMcfe/day by year-end.

A long-time San Juan Basin operator, LOGOS has an “extensive inventory” of drilling locations in the Mancos Shale and Gallup oil play, North Hudson said in a June press release.

“Our operating and development track record, basin-leading ESG programs, and financial and strategic support provided by North Hudson, place LOGOS in an excellent position to execute on the next phase of value creation.”—Jay Paul McWilliams, CEO, LOGOS Resources II LLC

LOGOS built a large portion of its position in the San Juan Basin through a 2017 acquisition of WPX Energy’s assets for $169 million. The assets included 900 producing wells and 200 potential Mancos locations on 134,000 net acres in New Mexico and Colorado.

At the time of the WPX deal, LOGOS said its San Juan assets would consist of oil, gas and condensate that would average 112 MMcfe/d.

LOGOS will retain its existing management team led by CEO Jay Paul McWilliams following its sale to North Hudson.

McWilliams said North Hudson will enable LOGOS to accelerate the development of its Mancos and Gallup reserve base following a successful 2021 horizontal drilling program. The company holds 55,000 gross acres in the heart of the Mancos Shale.

“Our operating and development track record, basin-leading ESG programs, and financial and strategic support provided by North Hudson, place LOGOS in an excellent position to execute on the next phase of value creation,” he said.

North Hudson is a Houston-based energy investment firm focused “on opportunistic upstream and midstream energy investments in North America.” It has more than $850 million of assets under management.

Mark Bisso, managing partner of North Hudson, said LOGOS offers the firm a significant opportunity for its investors given the company’s “strong management team, significant and stable production base, and expansive undeveloped resource base.”

Kirkland & Ellis and Skadden served as legal counsel for North Hudson for the LOGOS transaction.

North Hudson’s current portfolio comprises both nonoperated and operated oil and gas assets in about 4,500 wells primarily located in the Permian, Denver-Julesburg and San Juan basins as well as the Haynesville Shale.

In January, North Hudson’s affiliate, Split Rock Resources LLC, acquired nonoperated Permian Basin oil and gas assets from a private seller for $97.5 million cash. The acquisition primarily consisted of assets in the Delaware and Midland basins.