Akin Gump Advises Sanchez Energy in $107 Million Midstream and Production Asset Sale
(Houston) – Sanchez Energy Corporation announced it has executed definitive agreements with Sanchez Production Partners LP (SPP) pursuant to which it anticipates:
- SPP will acquire Sanchez Energy’s 50 percent interest in Carnero Processing, LLC for an initial payment of approximately $47.7 million in cash and the assumption by SPP of remaining capital commitments to Carnero Processing, which are estimated at approximately $32.3 million;
- SPP will acquire certain non-core producing oil and gas assets, located in South Texas, from Sanchez Energy for total consideration of $27 million, prior to normal and customary closing adjustments; and
- SPP will obtain an option to acquire a lease, currently held by a wholly-owned subsidiary of Sanchez Energy, for a tract of land leased from the Calhoun Port Authority in Point Comfort, Texas, the location of which is intended for the construction of a marine crude storage terminal.
Akin Gump advised Sanchez Energy in connection with the negotiation of the transactions.
The Akin Gump deal team was led by oil and gas partner David Elder. It included oil and gas partners Patrick Hurley, Shubi Arora, William Morris and Eric Muñoz; oil and gas associates David Bartz and Chase Armbrust; and tax partner Alison Chen.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
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