Facing depressingly low natural gas prices, major energy companies, such as Oklahoma City-based Chesapeake Energy, are raising cash by selling assets and ownership shares. That means more acquisitions and joint ventures, which means more transactions for lawyers.
The latest is Chesapeake’s sale of $1.25 billion in ownership stake in a recently formed subsidiary to a private investment group led by GSO Capital Partners LP, an affiliate of the Blackstone Group.
The other investors include TPG Capital, Magnetar Capital and EIG Global Energy Partners.
The newly formed Chesapeake subsidiary is CHK Cleveland Tonkawa LLC, which owns approximately 245,000 net leasehold acres in the Cleveland and Tonkawa unconventional liquids-rich tight sand plays in Roger Mills and Ellis counties, Oklahoma.
GSO is represented by Thompson & Knight.
Weil, Gotshal & Manges M&A partner Rodney Moore of Dallas represents Magnetar. Other Weil lawyers involved in the deal are Jared Rusman (Tax, Benefits & Executive Compensation partner, Dallas); Martin Sosland (Business Finance & Restructuring partner, Dallas); and Starlett Carter, Kevin Crews, Benton Lewis and Samuel Peca (all Corporate associates, Dallas).
TPG Capital is represented by Vinson & Elkins partners Keith Fullenweider and Robin Fredrickson of Houston.
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