Press Release: American Energy to Acquire Three Oil and Gas Operators in PA and WV
8:04 am ET April 20, 2021 (Dow Jones) Print
American Energy to Acquire Three Oil and Gas Operators in PA and WV
ALLENTOWN, PA, April 20, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- American Energy Partners, Inc. ("American Energy") (PINK: AEPT), a diversified energy company, is excited to announce the Agreement to acquire three existing oil and gas operators in Western Pennsylvania and West Virginia. The transaction is valued in excess of $10,800,000. American Energy will acquire 100% of the stock and units of the three companies. Under the terms of the Agreement the transaction will be funded with a mix of debt and equity.
Highlights include:
-- Represents an increase in annualized revenue of approximately $2,000,000
beginning in Q3 2021 based on current strip pricing;
-- Low risk, low-cost stabilized production increase of 1,250 mmcfe per day
from 467 wells including midstream assets;
-- 19 Bcfe increase to net reserves;
-- 695 acres of 100% owned surface and oil and gas rights in Pennsylvania
and West Virginia held by production;
-- No drilling commitments or obligations;
-- Vertical integration of in-house production and midstream operations.
American Energy's CEO Brad Domitrovitsch stated, "This transaction furthers our commitment to acquiring steady cash flowing businesses while enhancing our ability to develop alternative green energy opportunities with the vast amount of acreage included in the package. I am extremely pleased and look forward to welcoming their employees into the American Energy family."
While Josh Hickman, a fifty percent owner of the oil and gas businesses being acquired, is on American Energy's board of directors, the transaction was approved by the Board of Directors after determining, in good faith, that the acquisition is in the best interests of American Energy since the acquisition will immediately contribute to top-line revenue.
The transaction is expected to close on July 1, 2021, subject to customary closing conditions.
American Energy Partners, Inc. (AEPT)
AEPT and its group of companies focus on providing solutions in markets where energy production and water meet technology. Collectively, the subsidiaries are engaged in the energy sector as well as the design, construction and operation of regional water treatment facilities that serve the industrial, energy and government sectors.
For additional information, visit: American Energy Partners, Inc.
