© 2016 The Texas Lawbook.
By Natalie Posgate
(Oct. 19) – Denver-based SM Energy said Tuesday that it is expanding its Midland Basin footprint by purchasing 35,700 acres in the area from EnCap Investments-backed QStar LLC for $1.1 billion.
QStar turned to Houston M&A partners John B. Connally and Steve Gill to lead its end of the deal. They received assistance from Houston associates Mike Marek, Davis Zapffe and Mike LeFevre. Dallas tax partner Todd Way and associate Julia Pashin, as well as Houston environmental partner Larry Nettles also worked on the deal.
Petrie Partners served as SM Energy’s financial advisor. Jeffries represented QStar and EnCap.
In addition to forking over QStar $1.1 billion in cash, SM Energy will also issue QStar and EnCap $500 million worth of SM Energy common stock.
The deal is expected to close mid-December.
SM Energy said in the same announcement that it is divesting its Williston Basin assets to Oasis Petroleum for $785 million.
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