Aethon Energy Management LLC together with its partner, RedBird Capital Partners LLC, said July 1 it closed the acquisition of certain Ark-LA-Tex assets from SM Energy Co. (SM).
The deal, worth about $54 million, was the second transaction of SM's divestiture in the Ark-LA-Tex area of East Texas and northern Louisiana.
The first transaction closed in June 1 to an undisclosed buyer for about $270 million. In total, SM sold about $324 million worth of assets.
SM's Ark-LA-Tex assets include about 76,300 net acres with current net production of 29 million cubic feet equivalent per day (MMcfe/d), 98% of which is gas.
With the closing of the acquisition, Aethon, in partnership with RedBird, now manages assets in the Ark-LA-Tex area producing about 56 MMcfe/d. The collective reserve base is low risk, long life, and cash producing with considerable upside optionality, Aethon said.
RBC Richardson Barr was adviser to SM Energy in the transactions.
Weil Gotshal & Manges LLP and Ringet & Collier PLC were legal counsel to Aethon. Gardere Wynne Sewell LLP was legal counsel to RedBird. RedBird's financial adviser was Evercore Partners Inc.
Recommended Reading
Oil Falls as Swelling US Supply Counters Middle East and Hurricane Risks
2024-10-09 - Oil fell on rising U.S. crude inventories but the risk of supply disruption from the Middle East and Hurricane Milton curbed price declines.
Kissler: How Long Will Geopolitical Unrest Support Crude Prices?
2024-10-10 - Slower global economic growth pulls prices in the opposite direction even as oil prices were up about 4% on Oct. 10 due to factors including risks to Middle East supply.
Geopolitical Tensions Complicate Oil Price Predictions
2024-10-14 - Geopolitical tensions around the world are an ongoing wildcard for oil prices in the near-term, according to BOK Financial Securities’ Dennis Kissler. U.S. producers will have to pivot off of whatever hand they are dealt.
Psst: NatGas Futures Haven’t Priced in AI Power Demand Yet
2024-10-23 - Gas-fired power demand is coming for AI-enhanced data generation as Microsoft, Amazon and others race to stay on top—and not go the way of IBM—analysts said at a Pittsburgh energy forum.
Marcellus Waiting to Exhale But Held Back by Regional, Economic Factors
2024-11-06 - After years of exploitation as one of the country’s first unconventional shale plays, the Marcellus still has plenty of natural gas for producers, even if regional and economic factors have kept much of it bottled up.