Private Oil Producer Secures $320 Million Loan For Williston Basin Growth

Nine Point Energy LLC secured a multibillion-dollar financing this week to support the oil and gas producer’s development in the Williston Basin.

The financing is comprised of a $320 million term loan facility led by AB Private Credit Investors LLC (AB-PCI). Nine Point said in a June 17 release the funds will support the continued growth of its Williston development program.

Nine Point controls roughly 53,000 net acres within the Williston Basin, primarily in North Dakota’s McKenzie and Williams counties. The company produces roughly 15,000 barrels of oil equivalent per day across its acreage, according to the Nine Point release.

The Denver-based company’s predecessor is Triangle Petroleum Corp., which had filed for Chapter 11 bankruptcy in 2016. Following completion of a restructuring the following year, its subsidiary Triangle USA Petroleum Corp. emerged out of bankruptcy with the new moniker Nine Point Energy.

Since then, Triangle Petroleum, which still holds interests in North Dakota’s energy and commercial real-estate markets, has fallen back into bankruptcy, filing for Chapter 11 protection in May. According to a report by the Wall Street Journal, bondholder J.P. Morgan Securities will take ownership of Triangle Petroleum as part of its latest reorganization.

As for Nine Point, the privately-held company has focused on operational efficiencies and has said that recent well results have bested historical record performing wells’ production on a 30‐day cumulative basis.

For 2018, Nine Point executed a continuous single rig development program that resulted in a 21% increase in net production relative to the prior year. In total, the company drilled 21 gross (16.9 net) wells and completed 21 gross (16 net) wells last year.

Nine Point said in an operational update posted to its website that the 2018 results have created a strong platform for further growth in 2019 and beyond.

Dominic Spencer, president and CEO of Nine Point, sees the company’s financing with AB-PCI aiding in its continued success.

Based in Austin, Texas, AB-PCI is the middle market direct lending platform of global asset management firm AllianceBernstein LP.

“We are very pleased to enter into this partnership with AB-PCI and its co-lenders,” Spencer said in a June 17 statement. “This facility will allow Nine Point’s outstanding team to continue value creation through the development of our Williston Basin position.” 

AB-PCI acted as lead-arranger for the Nine Point facility as well as administrative agent. Credit Suisse Securities (USA) LLC was the exclusive placement agent. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Nine Point, while Sidley Austin LLP served as legal counsel to AB-PCI for the transaction.

Emily Patsy can be reached at epatsy@hartenergy.com.