Marketed: Tristates Upstream and Gathering Divestment Acquisition Opportunity

The following information is provided by Detring Energy Advisors LLC. All inquiries on the following listings should be directed to Detring. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Foundation Energy Management LLC retained Detring Energy Advisors LLC to market for sale its upstream and midstream oil and gas assets across Colorado, Kansas and Nebraska.

The assets—comprising robust and predictable cash flow from shallow-decline production with healthy margins—are located in Colorado’s Yuma, Washington, Phillips and Lincoln counties, Kansas’ Cheyenne and Sherman counties and Nebraska’s Chase and Dundy counties.

Foundation will entertain bids on either or both upstream and midstream asset packages, according to Detring.

Highlights:

• Upstream Operations:
  • Robust Operating Cash Flow ($7 million next 12-month PDP) and Production (13.1 MMcfe/d, net)
    • 9% next 12-month decline from ~2,200  wells underpins stable production profile
    • PDP PV-10 of $26.4 million
    • Net reserves of 54.9 Bcfe (PDP only)
    • Resilient cash flow stream ensured by low operating expenses and healthy margins
    • ~$1.73/Mcf operating cash margin
  • Turn-key business unit inclusive of five yards outfitted with substantial inventory including high-value equipment and materials to support continued asset operations
• Midstream Operations:
  • 100% ownership in extensive gathering and transportation infrastructure gives mission critical control over operations and cost efficiencies
    • Over 650 miles of pipeline and 24,000 HP of compression
  • Long-lived production base inclusive of true third-party producers with an 8% annual decline through 2026
    • ~$1.6 million next 12-month EBITDA on current throughput of ~18,400 Mcf/d

Process Summary:

• Evaluation materials available via the Virtual Data Room on June 30
• Proposals due on July 28

The seller anticipates executing a purchase and sale agreement by late August and closing by mid-October, Detring said.

For information visit detring.com or contact Melinda Faust at mel@detring.com or 512-296-4653.