© 2017 The Texas Lawbook.
By Natalie Posgate
(Feb. 8) – Austin-based Parsley Energy said Tuesday that it will purchase $2.8 billion worth of assets in the Permian’s Midland Basin from Fort Worth-based Double Eagle Energy Permian.
The assets, which involve both undeveloped acreage and producing oil and gas properties, will grow Parsley’s total net acreage in the Permian Basin to around 227,000 acres.
Bracewell’s J.J. McAnelly of the firm’s Houston office is leading the deal for Parsley. Others on the Bracewell team included Houston partners Charles Still, Emily Leitch, Robert Nichols, Scott Sanders and Andrew Zeve; Houston associates Austin Lee, Molly Butkus, Kate McGregor, John Stavinoha III, Lucas Tanner, Jonathan Seliger and Scott Thompson; and attorneys from the firm’s New York and Washington, D.C. offices.
Parsley said it will pay for the assets with $1.4 billion in cash and approximately 39.4 million units of Parsley Energy, LLC. The company said it will finance the cash portion of the transaction through equity and debt offerings, which were also announced Tuesday.
Double Eagle turned to two New York-based partners and Houston associate Shamus Crosby of Vinson & Elkins to lead its end of the deal. The V&E deal team also included Houston partners Ramey Layne, Stephen Jacobson, Sean Becker and Larry Nettles, as well as associates Daniel McEntee and Ali Choate; Dallas partners Marc Rose and David Peck; and attorneys from the firm’s New York office.
Double Eagle is not your typical oil company. The executives sign deals on the hoods of pickup trucks, and one of the founders is a retired NFL player. Started in the height of the Great Recession, Double Eagle’s first office in rural Texas had bugs crawling on the walls. More about the company’s fascinating rags to riches story can be found in an October 2016 profile by Reuters here.
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