PureWest Energy, a Denver-based privately held natural gas producer, announced May 31 it closed a merger with a newly formed entity sponsored by family offices and financial institutions for $1.84 billion in cash.
Members of consortium, the release said, included A.G. Hill Partners, Cain Capital, Eaglebine Capital Partners, Fortress Investment Group, HF Capital, Petro-Hunt and Wincoram Asset Management.
PureWest’s management and employees will remain with a new board composed of representatives from the consortium. PureWest’s CEO is Chris Valdez and its president and CFO is Ty Harrison.
“Our team has successfully consolidated operations on the Pinedale Anticline, showcasing a sustainable inventory runway. Moreover, we have positioned our brand as a prominent market leader in low methane certified gas and earned recognition as the best workplace in Denver,” Valdez said in a statement. “We are thrilled about our partnership with the new equity consortium, which will further fortify the robust platform we have established.”
Harrison said the transaction strategically positions PureWest for sustainable long-term value creation by leveraging its unique capital structure, which includes family office equity and securitized debt.
“The company plans to increase its high-margin production through development as well as execute its differentiated gas strategy,” he said.
As part of the transaction, the company closed on a third asset-backed securitization for $200 million. PureWest also completed a sale of producing wellbores to investment vehicles managed by Houston-based Wincoram. Terms weren’t disclosed.
Evercore was PureWest’s financial advisor.
PureWest’s general counsel is Kason Kerr, who tapped Vinson & Elkins as outside counsel on the deal. The V&E team was led by partners John Grand, Jim Fox and Shay Kuperman and senior associates David Latham and Patrick Whelan with assistance from partners Crosby Scofield, Ben Higson and Miguel Colebrook and associates Katherine Harclerode, Anne Jensen, Nick Gonzalez and Austin Scieszinski.
Other team members from Texas include partner Todd Way, counsel Peter Rogers and associate Miron Klimkowski (tax); partner Becky Baker (employment/labor); associate Cassandra Zarate (executive compensation/benefits); partners Jeff Crough and Craig Zieminski, associates Grant Newton, Britton Taubenfeld and Eugene Temchenko (litigation); partner Sarah Mitchell and associate Victoria Bahrami-Negad (insurance); and counsel Brandon Tuck and associate Kevin Moscon (environmental).
On the securitization, the team was led by V&E partner Niels Jensen, senior associate Demi Hueth and associate Payton Hampton with assistance from partner Tzvi Werzberger, counsel Carter Olson and Noelle Alix, senior associate Jennifer Bassett and associates Lily Marrs, Hayley Johnson, Coral O’Connor and Michelle Kraidman.
Other team members on the securitization included, in Texas, Rogers, Grand and Latham from the merger team, along with partners Ramey Layne and Robert Kimball, counsel Joanna Enns and associates Nate Richards and John Sasso (corporate); and partner Shane Tucker and counsel Heather Johnson (executive compensation/benefits).
On the first two securitizations, one for $600 million in November 2011 and another for $365 million this past September, PureWest used Porter Hedges.
The consortium’s financial advisor was Guggenheim Securities and its outside counsel was O’Melveny & Myers, David B. Denechaud and Jackson Walker.
O’Melveny & Myers’ team was led by partner and Texas corporate regional head Whit Roberts and partner Jason Schumacher. The group included, in Texas, partners Will S. Becker, Ryan Cicero, Garrett Johnston, Sid Mody and Kimberly F. Williams; counsel Austin Elder, Albert Jou and Cheryl Looper; and associates Eleanor Gilbert, Sahil Nooruddin, Luke Ohnmeis, Brent Rubin and Silvia Smith.
From Jackson Walker, who advised Wincoram, it was a team led by Joe Flack that included Courtney R. Wade, Jonathan B. Judkowitz, Heather Waters, and Graeme Hawkins.
PureWest is focused on developing its long-life gas reserves in Wyoming’s Green River Basin where the company controls more than 111,000 net acres in and around the Pinedale and Jonah Fields.
PureWest said it’s also focused on achieving ever-higher ESG performance as part of its commitment to stakeholders. It claims to have an industry-leading methane intensity rate of 0.05 percent, more than two years with zero motor vehicle incidents and an employee-led community investment program.