BCE-Mach III LLC Announces Agreements to …
OKLAHOMA CITY–(BUSINESS WIRE)–BCE-Mach III LLC (“BCE-Mach III”), the third partnersh …Read More
OKLAHOMA CITY–(BUSINESS WIRE)–On April, 9, 2020, BCE-Mach III LLC closed the acquisitions of both the upstream assets of Alta Mesa Holdings, LP and its subsidiaries (“AMH”) and the midstream assets of Kingfisher Midstream, LLC and its subsidiaries (”KFM”), which are principally located in Kingfisher County, Oklahoma.
The acquisitions of AMH and KFM represent the first acquisitions in the newly formed BCE-Mach III LLC and the sixth and seventh acquisitions by partnerships between Bayou City Energy Management LLC (“BCE”) and Mach Resources LLC (“Mach”) since 2018. With these closings, on a combined basis, the BCE-Mach partnerships will have net daily production of ~58 Mboe/d, interests in over 5,700 wells and ~500,000 net acres across the Mid-Continent.
“For several years now we have stated that caution was needed with regard to further investment in the upstream space,” said Mach CEO Tom L. Ward. “Stretched reserve valuations and cash being spent in excess were creating a situation that was untenable for the industry. Although we did not know at the time we developed the thesis that a global pandemic would further exacerbate the already dire situation, we did understand that the situation was unsustainable.”
“Our goal is to be patient and be the buyer of choice in the Mid-Continent for both undercapitalized, distressed sellers and healthy sellers looking to reduce outstanding debt,” Ward continued. “We believe this strategy will reap large rewards in the future as this market corrects itself through a lack of capital invested in future drilling, and, having made seven acquisitions to date, we remain committed to our strategy. We are thankful to Will McMullen and BCE as they understood the state of the market more than two years ago and joined with Mach to create what is now a premier Mid-Continent operator.”
Will McMullen, founder and managing partner of BCE, commented that, “BCE is excited to continue its partnership with Tom Ward and his team at Mach by adding the AMH and KFM assets to its existing platforms. By applying to these assets, the same prudent operatorship that the BCE-Mach partnerships have employed with assets previously acquired in the Mississippi Lime and Western Anadarko Basin, we believe the additional scale of these assets will bolster strong returns for our investors. When warranted, we intend to conservatively develop the assets with an unwavering focus on maximizing free cash flow. And, we look forward to continuing to consolidate the Mid-Continent in furtherance of this same strategy.”