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Energy & Sustainability M&A Activity – December 2018

Recent M&A Activity

  • October 25, 2018: Magnum Oil Tools International was acquired by Nine Energy Service for $493 million. The acquisition will provide Nine Energy Service with an oil field service platform that provides customers with better service and help the company’s continued growth.

  • October 28, 2018: Penn Virginia reached a definitive agreement to be acquired by Denbury Resources for $1.7 billion. Through this acquisition, Denbury’s significant enhanced oil recovery expertise on the prolific Eagle Ford shale will position it at the forefront of this new arena. The deal is expected to complete during the first quarter of 2019.

  • October 29, 2018: Plymouth Rock Energy reached a definitive agreement to be acquired by ENGIE Resources for an undisclosed amount.

  • October 30, 2018: Superior Solar Systems was acquired by Solar Source for an undisclosed amount.

  • October 30, 2018: WildHorse Resource Development reached a definitive agreement to be acquired by Chesapeake Energy for $3.26 billion. As a part of the transaction, WildHorse Resource Development shareholders will be able to trade each of their shares for either a combination of $3.72 cash and 5.336 shares of Chesapeake Energy common stock or 5.989 shares of Chesapeake Energy common stock. The cash terms of the deal are expected to be between $275 million and around $400 million, to be funded by Chesapeake’s revolving credit facility. The acquisition of WildHorse expands Chesapeake Energy’s oil growth platform and accelerates progress toward its strategic and financial goals of enhancing margins, achieving sustainable free cash flow generation, and reducing net debt to EBITDA ratio.

  • November 1, 2018: Newfield Exploration reached a definitive agreement to be acquired by Encana for CAD 5.5 billion.

  • November 1, 2018: On-Site Fuel Service was acquired by Diesel Direct for an undisclosed amount.

  • November 7, 2018: Deepwater Wind was acquired by Ørsted for $510 million. The acquisition would enable Ørsted to create the number one offshore wind platform in North America and deliver clean energy to the seven states on the US East Coast.

  • November 9, 2018: U.S. Well Services acquired Matlin & Partners Acquisition through a reverse merger, resulting in the combined entity trading on the NASDAQ Capital Market.

  • November 9, 2018: Lime Energy was acquired by Willdan Group for $120 million. The company signed a new credit agreement with a syndicate of BMO Harris Bank and MUFG Union Bank to provide up to $90.00 million delayed draw senior secured term loan and $30.00 million revolving credit facility, each to mature on October 1, 2023.

  • November 13, 2018: A subsidiary of Petroleum Geo-Services, the OptoSeis fiber optic sensing technology business of PGS Americas, was acquired by Geospace Technologies for $25 million. The company will receive a contingent payout of $23.2 million upon the completion of future performance terms. The acquisition and integration of this business strategically complement Geospace Technologies’ product catalog of advanced technology offerings.

  • November 16, 2018: Cretic Energy Services was acquired by Forbes Energy Services for an undisclosed amount.

  • November 19, 2018: Resolute Energy has entered into a definitive agreement to be acquired by Cimarex Energy for $890 million. The purchase price of $1.6 billion includes the company’s long-term debt of $710 million. Under the terms of the definitive merger agreement, Resolute shareholders will have the right to receive 0.3943 shares of Cimarex common stock, $35 per share in cash, or a combination of $14 per share in cash and 0.2366 shares of common stock. The transaction, which is expected to be completed by the end of the first quarter of 2019, is subject to the approval of Resolute Energy shareholders, and the satisfaction of certain regulatory approvals and other customary closing conditions. The acquisition will increase Cimarex’s scale of key Delaware Basin assets, adding 21,100 acres in Reeves County, Texas.

     

*Source: Pitchbook

 

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Authors

Thomas R. Burton, III

Member / Chair, Energy & Sustainability Practice

Tom Burton has helped to shape the clean energy industry by drawing on his passion for innovation. As a Mintz attorney, Tom counsels investors, entrepreneurs, and Fortune 100 companies. He also guides start-up organizations and accelerators to foster the next generation of energy leaders.

Sahir Surmeli

Member / Co-chair, Energy & Sustainability Practice

Sahir Surmeli is a Mintz business counselor who advises companies, boards, entrepreneurs, investment banks, and venture and private equity investors as they grow. He handles public offerings, 144A and private financings, acquisitions, joint ventures, and strategic partnerships.