ARM Energy Holdings LLC said that the company and its partners have sold Kingfisher Midstream, LLC to Silver Run Acquisition Corporation II, in exchange for an aggregate consideration of up to $1.55 billion.
The transaction consideration is comprised of $800 million in cash, ~$550 million in Silver Run II stock and up to ~$200 million in additional Silver Run II stock based upon future Silver Run II trading performance.
Kingfisher provides midstream energy services, including crude oil and gas gathering, processing and marketing to producers in Oklahoma’s STACK play. ARM Energy formed Kingfisher in September 2015 in partnership with HPS Investment Partners.
Since Kingfisher’s formation, ARM Midstream, on behalf of Kingfisher, successfully contracted acreage dedications of approximately 300,000 gross acres in the STACK play in Oklahoma. Kingfisher has natural gas processing capacity of 350 MMcf/d and more than 400 miles of natural gas and crude oil pipelines. Kingfisher’s strategic firm transportation also provides residue solutions and flow assurance to its producer customers.
ARM Energy CEO Zach Lee said, “We are pleased to have completed our transaction with Silver Run II, Riverstone and Alta Mesa, and look forward to maintaining a shareholder position in Alta Mesa Resources as well as maintaining our relationship with our existing financial partner, HPS Investment Partners. We are delighted by the successes Kingfisher has achieved in such a short timeframe and proud of the great assets we have built.”
The new company – Alta Mesa Resources, Inc. – will present at EnerCom Dallas
Silver Run II completed its business combination with Alta Mesa Holdings, LP and Kingfisher Midstream, LLC on February 9, 2018. The new company is called Alta Mesa Resources, Inc. (ticker: AMR).
Alta Mesa Resources, Inc. will be presenting at the EnerCom Dallas investment conference, Feb. 21-22 at the Tower Club in downtown Dallas. Institutional investors, portfolio managers, financial analysts, CIOs and other investment community professionals who invest in the energy space should register now.
