Silver Run forms Oklahoma Stack focused group

2017-08-16 17:00:21 admin 60

1503299118.jpgSilver Run Acquisition II, the start-up led by former Anadarko Petroleum chief executive James Hackett, has agreed to combine with Alta Mesa and privately held Kingfisher Midstream both focused on Oklahoma's Stack play in a deal valued at $3.8 billion.

The transaction is subject to the approval of Silver Run II stockholders and is set to close in the fourth quarter of 2017. After the deal closes Silver Run II will be renamed Alta Mesa Resources.

James Hackett, chairman and chief executive officer of Silver Run II, will serve as executive chairman following the business combination, while Harlan Chappelle, Michael Ellis, and Michael McCabe will continue as CEO, COO, and CFO of Alta Mesa Resources, respectively. The new combined firm will have an aggregate market capitalization of approximately $3.8 billion. 

Alta Mesa, which holds about 120,000 contiguous net acres with about 4,200 gross identified drilling locations in the STACK play in the Anadarko Basin, and privately held Kingfisher Midstream, which operates over 300 miles of pipeline, 50,000 barrels of crude storage capacity, and 60 MMcf/d of gas processing capacity.

Hackett commented: "We formed Silver Run II with the objective of acquiring low-breakeven, stacked-pay, oil-weighted assets, preferably with an integrated related midstream platform. The combination of Alta Mesa and Kingfisher is a perfect strategic match for our desired integrated platform. 

Chappelle stated: "We see this as a tremendous way to continue our evolution as a low-cost, high-value producer in the STACK. Mike Ellis and I are excited about the opportunity to work with Jim Hackett, Silver Run II, and Riverstone to continue building a great enterprise.  Kingfisher Midstream is a creative addition, as it has been an important factor in our growth, providing effective gathering, efficient processing, and assurance that our production will continue to flow as the activity in the basin expands."