Mach Natural Resources LP has closed its acquisition of oil and gas assets from Sabinal Energy LLC and assets managed by IKAV San Juan in a pair of deals valued at $1.3 billion.
In the Permian Basin, Mach said in July it would pay $500 million to acquire assets from Sabinal Energy LLC, a private E&P backed by Kayne Anderson private equity funds.
In the San Juan Basin, the company said it would pay $787 million to acquire IKAV San Juan, one of the basin’s top natural gas producers.
"Today marks an important step forward for Mach. With the successful completion of these two acquisitions, we have advanced our strategic pillars by nearly doubling production, establishing meaningful positions in the Permian and San Juan Basins, and creating a more balanced, multi-basin portfolio," Mach CEO Tom L. Ward said in a Sept. 16 press release.
Mach funded the acquisitions through the combination of borrowings under the company's credit facilities and the issuance of Mach common units.
After completing the transactions, Mach has approximately 168 million common units outstanding, including approximately 19 million units issued to the sellers of Sabinal and approximately 31 million units issued to the sellers of IKAV San Juan.
Mach also said that positive amendments have been made to its credit facility. The amendments included upsizing its revolving credit facility to $1 billion from $750 million and issuing a new term loan of $450 million. As a result, the company's borrowing base increased from $750 million to $1.45 billion.