Backed by the Kayne Private Energy Income Fund, Oklahoma City-based oil and natural gas company Valorem Energy completed its acquisition of LINN Energy’s Williston Basin interests for a purchase price of $285 million.
The acquired assets consist of approximately 20,000 net acres in North Dakota, South Dakota and Montana with estimated third quarter net production of 8,750 barrels of oil equivalent per day.
“We are excited to announce our first acquisition since forming Valorem earlier this year. We believe this acquisition provides us with an initial building block to our long-term strategy of operating large oil and gas assets and achieving superior returns for our investors,” said Justin Cope, CEO of Valorem.
Danny Weingeist, managing partner at Kayne Anderson, added, “We are proud of the Valorem team and believe the assets are a great fit for both Valorem’s and the Fund’s strategies. We look forward to working with Valorem to deploy additional capital.”
J.P. Morgan, Citigroup Global Markets and Wells Fargo Securities acted as joint lead arrangers for debt financing to support the acquisition.
Vinson & Elkins provided legal counsel to Valorem, while Mobius Risk Group served as marketing and derivatives advisor and Opportune provided due diligence and integration assistance.