Sanchez Energy and funds managed by Blackstone Energy Partners entered a strategic 50/50 partnership and agreed to acquire Anadarko Petroleum’s working interest in the Western Eagle Ford for approximately $2.3 billion.

Sanchez Energy and Blackstone will use cash on hand and commitments received from financial partners and commercial banks to provide financing for the acquisition and anticipate that the transaction will close in the first quarter of 2017. JPMorgan Chase and Citigroup Global Markets are acting as joint lead arrangers and joint bookrunning managers on the new secured credit facility to support the acquisition.

Sanchez Energy will fully fund its 50% of the acquisition through a combination of cash on hand and commercial bank and preferred equity commitments at a newly formed non-recourse subsidiary. Blackstone will fund its 50% of the acquisition through a separate entity via equity and commercial bank commitments.

“This accretive and transformative acquisition more than doubles our drilling inventory, adds 132 high rate of return DUCs, increases Sanchez Energy’s resource potential by over 550 MMBoe and provides a path for strong growth within projected cash flow,” said Tony Sanchez, III, CEO of Sanchez Energy. “With the asset strategically located adjacent to our existing Catarina asset, we anticipate substantial operating synergies and other benefits arising from the scale and concentration of our Eagle Ford position. Our continued focus on the Western Eagle Ford, expertise at multi-bench development, efficient cost structure and strong liquidity position will enable us to create significant value from the acquired assets.

Intrepid Partners served as the sole financial advisor for Sanchez Energy. Legal advice was provided by Akin Gump Strauss Hauer & Feld and Kirkland & Ellis.

Sanchez Energy is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast.

Blackstone Energy Partners is Blackstone’s energy-focused private equity business. Blackstone is one of the world’s leading investment firms.

GSO Capital Partners is the global credit investment platform of Blackstone.