Mach and BCE Acquire Assets of Alta Mesa and Kingfisher Midstream

Updated 1 year 5 months ago

In January 2020, BCE-Mach III executed a purchase and sale agreement to acquired substantially all of the upstream oil and gas assets of Alta Mesa and Kingfisher Midstream (KFM) as port of Chapter 11 bankruptcy proceedings.

The purchase agreements provide that BCE-Mach III will acquire approximately 30 Mboe/d of production (67% liquids), approximately 72 MMboe of proved reserves, more than 900 operated wells, and 130,000 net acres (90% held by production) from Alta Mesa as well as gas processing capacity of 350 MMcf/d, 453 miles of gas gathering pipeline, 157 Mbw/d produced water system capacity, 224 miles of water disposal pipeline, 108 miles of oil gathering pipeline and 50 Mbbl oil storage capacity from Kingfisher for a combined purchase price of $320 million with a January 1, 2020 effective date.

UBS Securities served as a financial advisor to BCE-Mach III, and closing is expected in February 2020. This is the sixth acquisition between BCE and Mach with three previous acquisitions in the Mississippi Lime and two in the western Anadarko Basin. On a combined basis, the partnership will have a net daily production 58 MMboe/d, interests in over 5,700 wells, and 500,000 net acres. The $310 million bid was accepted, but the deal failed to close in March after oil prices dropped significantly. A revised offer of $220 million was accepted in April, and the deal closed later that month.

Alta Mesa was founded in 1987, and Kingfisher Midstream was established in 2015. Silver Run Acquisition II was formed by James T. Hackett with backing from Riverstone in 2016 and completed a public offering in 2017. Alta Mesa, Kingfisher, and Silver Run were combined in 2018 to form Alta Mesa Resources. The company filed for bankruptcy in 2019.

Mach CEO

"This was a unique opportunity to acquire a sizeable cash-flowing asset with the supporting midstream infrastructure, through a bankruptcy process, in an area of our team’s expertise and still have an extensive inventory for future development."