BCE-Mach Resources Partnership Acquires Alta Mesa's Mid-Continent Assets
BCE-Mach III LLC, a partnership between private equity firm Bayou City Energy Management LLC (BCE) and Oklahoma City-based Mach Resources LLC (Mach), has executed purchase and sale agreements with Alta Mesa Resources Inc. to acquire all of the upstream assets of Alta Mesa Holdings LP (AMH) and the midstream assets of Kingfisher Midstream LLC (KFM), for a total purchase price of US$320 million. The acquisition includes 130,000 net acres in the Anadarko Basin in Oklahoma, with approximately 30,000 barrels of oil equivalent (boe) per day of associated production and 72 MMboe of 1P Reserves. In addition, BCE-Mach III will acquire 350 million cubic feet (MMcf) per day of gas processing capacity, 453 mi. of gas and 108 mi. of oil gathering pipelines, and a 50,000 thousand barrels of oil storage capacity from KFM. Previously, in September 2019, Alta Mesa Resources along with various subsidiaries and affiliates had filed voluntary petitions under Chapter 11 of the bankruptcy code in the U.S. Bankruptcy Court. KFM and its subsidiaries, however, were not part of the Chapter 11 reorganization process. The transactions are expected to close in February. UBS Securities acted as financial advisor to BCE-Mach III.