Transactions
Click on each tombstone for additional information.
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Transaction Highlights
Pacific Exploration & Production (TSE:PEN) is the largest private-sector oil and gas producer in Colombia. Its operations cover a number of countries, although concentrated in Colombia and Peru. The company currently produces ~75,000 barrels-equivalent per day.
In late April 2016, Pacific E&P sought protection from its creditors under the laws of Canada, the United States and Colombia. At the time of filing, the company’s outstanding debt was $5.4 billion.
The company emerged from bankruptcy in early November 2016, with outstanding debt of $250 million, a cash balance of ~$500 million, and generating positive operating cash flow.
Acquest was engaged in conjunction with Blackhill Partners in its role as Chief Restructuring Officer (CRO) to assist Pacific E&P in its restructuring efforts. Acquest brought experience in Latin America upstream M&A and midstream operations as well as the ability to transact in Spanish.
Key Takeaways
Acquest identified areas for optimization of the company’s complex oil transportation arrangements within Colombia.
Acquest also evaluated the company’s upstream portfolio in Colombia and Peru, identifying certain non-core assets and aiding the company in its divestment processes.
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Transaction Highlights
JP Energy is a liquids focused midstream MLP whose general partner, JP Energy Development (“Seller”) is majority-owned by ArcLight Capital Partners
The assets sold include an approximately 75-mile crude oil pipeline system in Southern Oklahoma and North Texas and associated crude oil hauling and marketing business
Acquest served as exclusive financial advisor to Seller
Key Takeaways
Through a competitive sale process, Acquest helped Seller achieve a favorable valuation of the business by selling to a strategic buyer with operations in the region
Seller was able to successfully exit a non-core region and redeploy proceeds to its core operations
Acquest advised Seller on the selection of financial and commercial terms from bidders’ proposals
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Transaction Highlights
New Gulf Resources, LLC (“NGR”) is a private equity-backed independent oil and gas company with a primary focus on the Eaglebine in East Texas
NGR sold its natural gas gathering system located in Leon, Madison and Grimes Counties, Texas for $85 million to Midcoast Energy Partners, LP (NYSE: MEP), a publicly‐traded MLP formed by Enbridge Energy Partners, LP
NGR entered into a long-term gathering and processing agreement consistent with its desired terms
Acquest served as exclusive financial advisor to New Gulf Resources regarding the sale and key commercial contracts
Key Takeaways
NGR will obtain the benefits of near-term expansion of the gathering system, the addition of on-system gas processing and improved NGL recoveries. MEP will bear the related capital expenditures
MEP plans to enhance the system by connecting it to their Ghost Chili system, which will improve recoveries and netback to NGR
NGR plans to use the proceeds to fund its Eaglebine drilling program
Acquest played a key role in executing the ‘carve-out’ of a producer built gathering system and developing the commercial and financial terms of the transaction including the gas gathering, processing and purchase agreements
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Transaction Highlights
Penn Virginia Corporation (NYSE:PVA) is a $2 billion enterprise value independent oil and gas company with a primary focus on the Eagle Ford Shale in Texas.
PVA received $150 million at closing as consideration for executing a long-term crude oil gathering agreement with Republic Midstream, a joint venture funded by ArcLight Capital Partners, LLC that is managed by American Midstream Partners, LP (NYSE: AMID) and JP Energy Partners.
Separately, PVA entered into a transportation services agreement to move its gathered volumes to selected long haul pipelines.
Acquest served as exclusive financial advisor to Penn Virginia Corporation.
Key Takeaways
PVA obtained a competitively priced comprehensive crude oil midstream solution for its production tailored to its development plan and marketing objectives. PVA avoids all capital costs, increases its netback price and marketing flexibility and funded two additional rigs to its drilling program.
Acquest played a key role in developing the commercial and financial terms of the transaction and advising on the first monetization of a ‘right to build’ a midstream gathering system.
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Transaction Highlights
Penn Virginia Corporation (NYSE:PVA) is a $2 billion enterprise value independent oil and gas company with a primary focus on the Eagle Ford Shale in Texas.
The assets included an approximately 120-mile natural gas gathering and redelivery system located in the oil window of the Eagle Ford shale.
The purchase price was $100 million.
Acquest served as exclusive financial advisor to Penn Virginia Corporation.
Key Takeaways
PVA succeeded in transferring responsibility for operation and future capital expenditures of its gathering system to American Midstream Partners, LP (NYSE: AMID), a strategic publically‐traded MLP buyer, through a highly competitive sale process.
The transaction represented a highly attractive valuation of 12.5x 2014 EBITDA in addition to avoiding future capital expenditures.
PVA entered into a long term gathering agreement consistent with its desired terms.
Acquest played a key role in executing the ‘carve-out’ of a producer built gathering system and developing the commercial and financial terms of the transaction.
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Transaction Highlights
Lubrication Services, LLC, a wholly owned subsidiary of Enterprise Products Partners L.P., is a leading multi-regional distributor of chemicals and fuels primarily servicing the oil and gas industry in several of the prolific U.S. shale gas plays.
Primary assets include offices, warehouses and storage tanks in 20 field locations, over 70 delivery vehicles and contracts and relationship with key customers and suppliers.
The purchase price was $42 million.
Acquest served as exclusive sell-side advisor to Enterprise Products Partners L.P.
Key Takeaways
Acquest advised Enterprise on identifying non-core assets that would yield attractive prices in the market.
Transaction achieved attractive valuation for a commodity products distribution business through highly competitive process.
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Transaction Highlights
Crossroads assets process natural gas from the Haynesville Shale and Cotton Valley Formation in East Texas.
Primary assets included an 80 MMcfd cryogenic processing plant, 20-miles of NGL pipeline, 8-miles of gathering pipeline and a 50% interest in an 11-mile residue pipeline.
The purchase price was $63 million.
Acquest served as exclusive sell-side advisor to Penn Virginia Resource Partners, LP.
Key Takeaways
Acquest advised Seller on identifying non-core assets that would yield attractive prices in the market.
A competitive auction process allowed seller to receive a large portion of the synergies a buyer brings to the assets.
The sale process was efficiently managed and closed within three months of initiating a sales process.
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Transaction Highlights
Advanced Aromatics owns and operates a 16-acre chemical plant in Baytown and has three business segments: specialty chemical solvents, naphthalene and naphthalene derivatives and customer-specific solutions.
Monument Chemical is a privately held, family owned business, headquartered in Indianapolis, IN.
Key Takeaways
Acquest identified Advanced Aromatics as an acquisition opportunity based on Monument Chemical's growth strategy and investment criteria.
Monument Chemical completed the transaction on a negotiated basis.
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Transaction Highlights
Asgard, headquartered in Denver, Colorado, is a natural gas marketing company that supplies a diverse set of customers in five states.
More than 1,400 commercial and industrial customers in Colorado, Kansas, and West Virginia.
More than 13,000 residential, commercial and agricultural accounts in the SourceGas Choice program in Nebraska and Wyoming.
Acquest served as exclusive sell-side advisor to Asgard's owners, High Sierra Energy, LP and Asgard's management.
Key Takeaways
Acquest worked with the owners of Asgard to market the business and provided comprehensive support for negotiations.
Achieved attractive valuation for retail marketing business.
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Transaction Highlights
Texon's crude oil business engages in purchasing, transporting and marketing crude oil and condensate for its suppliers in 16 states, including the Bakken, Granite Wash and Eagle Ford shale regions.
Primary assets included pipeline injection facilities, a terminal in south Louisiana, rail receiving facilities, regional transportation, trading and marketing relationships.
The purchase price was $205 million plus inventory.
Acquest served as exclusive sell-side advisor to Texon.
Key Takeaways
A negotiated transaction with Sunoco Logistics Partners L.P., with whom Texon completed a significant successful transaction in 2010.
The purchase price represents a premium valuation for a producer services and marketing business.
The sale process was efficiently managed and closed within three months of initial discussions.
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Transaction Highlights
Texon, L.P., a privately-held company, provides services to oil and gas producers and markets oil, gas and gas liquids purchased from its customers.
The butane blending business is a unique, high growth, service-oriented business in the downstream energy sectors.
The purchase price was $140 million plus inventory.
Primary assets were customer contracts, management and intellectual property.
Acquest served as sell-side advisor to Texon L.P.
Key Takeaways
Transaction achieved attractive valuation from Sunoco Logistics Partners, L.P., a strategic publically-traded MLP buyer, through a highly competitive sale process.
Acquest assisted in negotiating a complex transaction in which a portion of the business was retained by Texon, L.P.
Uniqueness of business required introducing buyers to a new business model and value opportunity.
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Transaction Highlights
Norton Energy Storage LLC is the largest compressed air energy storage (CAES) development in the world with permits to develop over 2,000 MW generation and related power storage capacity.
Acquest served as sell-side advisor to the owners of Norton Energy Storage, who included private equity firms Haddington Energy Ventures and CCMP.
Transaction achieved solid returns for equity sponsors.
Key Takeaways
Large-scale development project of proven, but rarely deployed technology, sold to FirstEnergy Corp, a leading investor-owned electric utility.
Acquest pursued multiple processes to develop both sale and fund-raising alternatives.
Sale of Norton Energy Storage was achieved despite no-near term commencement of construction; further development risk assumed by the buyer.
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Transaction Highlights
Gulf LNG is building a $1.1 billion LNG receiving terminal development in Pascagoula, Mississippi.
Sold a 50% interest to El Paso Energy Corporation for $300 million prior to commencing construction.
Terminal development was financed with an $870 million non-recourse credit facility.
An Acquest partner served as advisor to Gulf LNG in support of negotiating Terminal Use Agreements and funding the entire project development.
Key Takeaways
Equity sale and financing were run in parallel requiring coordination of new equity and the debt financing.
Financing achieved high leverage and no recourse to the sponsors.
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Transaction Highlights
Calumet Specialty Products Partners, LP is a publically- traded MLP that produces specialty hydrocarbon products.
Penreco, owned by M.E. Zuckermann & Co. and ConocoPhillips, manufactures and markets highly refined products and specialty solvents.
The transaction was funded through a portion of the combined proceeds from a public equity offering and a new term loan agreement.
Acquest served as buy-side advisor to Calumet Special Product Partners, LP.
Key Takeaways
Acquest developed a bid strategy to preempt competitive sale process.
Acquisition provided several key strategic benefits, including market synergies, additional operational and logistics flexibility, overhead cost reductions and broadening of the customer base.
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Transaction Highlights
P. A. Inc. is a specialty distributor of nickel alloy pipe, tubing, fittings and flanges that sells its products worldwide to maintenance, repair and operations distributors, pipe fabricators, engineering and construction companies and end-users in the chemical and petrochemical industries.
Acquest served as sell-side advisor to P. A. Inc.
Key Takeaways
Company was sold to a private equity firm with management retaining an equity interest in the company.
Valuation was attractive and difficult to negotiate because of rapidly increasing nickel price.
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Transaction Highlights
Bobcat Gas Storage is a $350 million salt dome storage facility in Louisiana with permitted capacity of 34 Bcfw.
An Acquest partner served as lead sell-side advisor to Haddington Energy Ventures, the sponsor of Bobcat, and lead a $185 million non-recourse credit facility financing.
Key Takeaways
Process developed to consider either 50% or 100% sale of project to both strategics and private equity funds; a 50% sale was ultimately deemed optimal.
An Acquest partner performed exclusive financial advisory role for both the equity and debt.
Transaction achieved both a greater equity valuation than recent comparables and highly attractive terms and conditions for debt.
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Transaction Highlights
Texon, L.P., a privately-held company, provides services to oil and gas producers and markets oil, gas and gas liquids purchased from its customers.
The retail gas marketing division is a self-contained operating unit that markets natural gas to retail customers in Pennsylvania.
Acquest served as sell-side advisor to Texon L.P.
Key Takeaways
Acquest completed a process to provide competition among buyers with a strategic view of the business.
Business was sold to a CenterPoint Energy, a strategic buyer with gas pipelines operating in the region.
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Transaction Highlights
Texon, L.P., a privately-held company, provides services to oil and gas producers and markets oil, gas and gas liquids purchased from its customers.
The three propane terminals are located in Vancouver, Washington, Albuquerque, New Mexico and Lordstown, Ohio.
The Assets purchased include all operating equipment and facilities located at the terminals, as well as land, leases, contracts, customer lists, inventory onsite and inventory stored at third-party facilities.
Acquest served as sell-side advisor to Texon L.P.
Key Takeaways
Business was sold to Keyera Facilities Income Fund, a publically-traded Canadian fund, that was expanding its U.S. operations.
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Transaction Highlights
Caledonia is a fully contracted 12 Bcfw depleted reservoir natural gas storage facility under development to be attached to the Tennessee Gas Pipeline system in Mississippi.
Facility includes plans to expand storage by an additional 5 Bcfw.
An Acquest partner served as sell-side advisor to raise construction equity and arranged a “stapled” financing option for the buyer.
Key Takeaways
Acquest obtained a robust valuation in a transaction with a Tenaska sponsored fund.
Transaction permitted the client to retain a large equity interest with no further funding obligations for the initial phase, i.e. residual carried interest.