© 2016 The Texas Lawbook.
By Natalie Posgate
(Aug. 15) – Sidley Austin and Vinson & Elkins lawyers said Monday that they advised Concho Resources and Reliance Energy in their agreement for Concho to purchase 40,000 acres in the Midland Basin from Reliance for $1.6 billion.
The transaction expands Concho’s core Midland Basin position to more than 150,000 net acres and production of 30,000 barrels of oil equivalent per day.
Midland-based Concho turned to Houston V&E partner Bryan Loocke to lead its end of the deal. Loocke received assistance from partner Matt Strock and associates Danielle Patterson, Mike LeFevre and Ali Choate, all based in the firm’s Houston office.
Texas V&E attorneys advising on other aspects of the deal include tax partner Todd Way and associate Julia Pashin in Dallas and environmental partner Larry Nettles, labor & employment partner Sean Becker and executive compensation/benefits partner Stephen Jacobson in Houston.
The Sidley deal team, which represented Reliance, was led by Houston M&A partner Mark Metts and associate Katy Lukaszewski. They received assistance from partner Joe Flack III and Angela Herrington, who are also based in the firm’s Houston office.
Other Texas Sidley attorneys advising on other aspects of the deal included tax partner Tim Devetski and associate Omair Khan from Houston and finance partner Kelly Dybala from Dallas. Attorneys from the firm’s Chicago and Washington, D.C. offices also worked on the deal.
To help fund the transaction, Concho plans to issue 3.96 million shares of common stock valued at approximately $500 million. Concho said it will pay for the remaining $1.1 price tag of the assets in cash. The acquisition is anticipated to close in the fourth quarter.
For the public offering portion of the transaction, Concho turned to V&E’s Strock, Choate and Houston associate Bailey Murdock.
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