Castleton’s $245 Million Acquisition of Terryville Upstream Assets

Greenhill acted as M&A advisor and Kirkland & Ellis served as legal advisor to Castleton Resources in this transaction. K&L Gates acted as legal advisor to Tokyo Gas America Ltd. Bracewell LLP acted as legal advisor to CCI.

Castleton Resources LLC entered into a definitive agreement to acquire the Terryville upstream assets in Northern Louisiana from subsidiaries of Range Resources Corporation for $245 million plus contingent payments that are a function of commodity prices. Under the terms of the agreement, Range will retain certain midstream commitments through their remaining term.

Castleton Resources is owned by Castleton Commodities International LLC (“CCI”) and Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co., Ltd. Tokyo Gas America Ltd. will increase its ownership in Castleton Resources from 46% to approximately 70% when the acquisition closes, with the balance to be held by CCI.

Castleton Resources is one of the largest producers in the Ark-La-Tex region of East Texas and Northern Louisiana. The company is private and is co-owned by subsidiaries of Tokyo Gas America and Castleton Commodities International.

The Kirkland team advising Castleton Resources was led by transactional partner Chad Smith (Picture) and associates William Eiland and Isaac Bate with assistance from transactional partner Adam Larson and and associate Abbey Zuech; tax partner Lane Morgan and associate Ryan Phelps; environmental transactions partner Jonathan Kidwell and associate Ty’Meka Reeves-Sobers; derivatives partner Drue Santora; antitrust partner Ellen Jakovic; international trade and national security associate Luci Hague; litigation associate Christian Menefee; labor and employment partner Madeline Klebanov; and employee benefits partner Melissa Grim.

Involved fees earner: Isaac Bate – Kirkland & Ellis; William Eiland – Kirkland & Ellis; Melissa Grim – Kirkland & Ellis; Luci Hague – Kirkland & Ellis; Ellen Jakovic – Kirkland & Ellis; Jonathan Kidwell – Kirkland & Ellis; Madeline Klebanov – Kirkland & Ellis; Adam Larson – Kirkland & Ellis; Lane Morgan – Kirkland & Ellis; Ryan Phelps – Kirkland & Ellis; Ty’Meka Reeves-Sobers – Kirkland & Ellis; Drue Santora – Kirkland & Ellis; Chad Smith – Kirkland & Ellis; Abbey Zuech – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Castleton Resources;

Author: Ambrogio Visconti