OKLAHOMA CITY–(BUSINESS WIRE)–BCE-Mach LLC, a recently formed partnership between Bayou City Energy Management LLC (“BCE”) and Mach Resources LLC (“Mach”), closed the purchase of operated producing properties concentrated in Woods and Alfalfa counties, Oklahoma on March 29, 2018 from Chesapeake Energy Corporation (NYSE:CHK). BCE-Mach was formed with a focus on acquisition opportunities with strong cash flow generation and drilling inventories.
“The Mississippi Lime in Woods and Alfalfa counties is a well-delineated play with an extensive inventory of future drilling locations,” said Mach CEO Tom Ward. “On a full cycle economics basis, this play competes with any in the Lower 48, and we are excited to join with a like-minded partner in Bayou City Energy focusing on projects with strong returns driven by stable cash flow. We will be an active developer of these properties from day one led by a team of well-seasoned industry professionals with extensive experience in the area.”
“This acquisition is an excellent fit for the strategy set out for BCE-Mach and represents precisely the type of opportunity BCE targets for its platform company investments,” BCE Managing Partner Will McMullen said. “We are thrilled to be commencing this partnership in earnest with a great cash-flowing asset and have the utmost confidence in the Mach team’s ability to maximize value from this well understood and infrastructure-advantaged position.”
TD Securities (USA) LLC as Lead Left Arranger & Sole Bookrunner, Capital One, National Association as Joint Lead Arranger, and Deutsche Bank Securities Inc. as Joint Lead Arranger assisted in debt financing for the acquisition. In addition, Kirkland & Ellis, Latham & Watkins, and McAfee & Taft provided legal counsel.