Akin Gump Counsels Sanchez Energy in $345M Midstream Deal
(Houston) – An Akin Gump team led by energy partner David Elder advised Sanchez Energy as it executed an agreement with Sanchez Production Partners LP (SPP) pursuant to which the company will divest, and SPP will acquire and operate, certain pipeline, gathering and compression assets located on the Western part of its Catarina asset in the Eagle Ford Shale in South Texas, for cash consideration of approximately $345 million, subject to normal and customary closing and post-closing adjustments. The transaction is expected to close in October 2015.
Proceeds from the divestiture further enhance Sanchez Energy's strong liquidity position, which is expected to enable the company to pursue growth opportunities through opportunistic asset acquisitions, the acceleration of cost-efficient drilling and completion activities, and the strategic leasing of additional acreage in its core areas of operations.
The deal team comprised Mr. Elder, energy partner Shubi Arora, tax partners Thomas Weir and Alison Chen, antitrust partner Paul Hewitt and senior attorney Stacy Kobrick, energy counsel Jhett Nelson and associates Stephen Harrington and Rahul Vashi.
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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