Chesapeake Energy Corporation’s $3.977 Billion Acquisition of WildHorse Resource Development Corporation

Goldman Sachs & Co. LLC acted as financial advisor, and Wachtell, Lipton, Rosen & Katz and Baker Botts L.L.P. acted as legal counsel to Chesapeake. Tudor, Pickering, Holt & Co., Morgan Stanley & Co. LLC and Guggenheim Securities, LLC acted as financial advisors and Vinson & Elkins LLP and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to WildHorse and NGP, respectively.

Chesapeake has entered into a definitive agreement to acquire WildHorse, an oil and gas company with operations in the Eagle Ford Shale and Austin Chalk formations in southeast Texas, in a transaction valued at approximately $3.977 billion, based on yesterday’s closing price, including the value of WildHorse’s net debt of $930 million as of June 30, 2018. At the election of each WildHorse common shareholder, the consideration will consist of either 5.989 shares of Chesapeake common stock or a combination of 5.336 shares of Chesapeake common stock and $3 in cash, in exchange for each share of WildHorse common stock. The transaction was unanimously approved by the Board of Directors of each company.

The acquisition of WildHorse expands Chesapeake’s oil growth platform and accelerates progress toward its strategic and financial goals of enhancing margins, achieving sustainable free cash flow generation, and reducing net debt to EBITDA ratio.

Wachtell, Lipton, Rosen & Katz advised with a team led by David A. Katz (Picture).

Baker Botts L.L.P. advised Chesapeake with a team including Clint Rancher (Partner, Houston); Joshua Davidson (Partner, Houston); Jamie Yarbrough (Associate, Houston); Stephen Noh (Associate, Houston); Josh Gonzales (Associate, Houston); Mitch Athey (Corporate); Thomas Fina (Antitrust); Richard Husseini (Partner, Houston); Jon Lobb (Partner, Houston); Tamar Stanley (Partner; Washington); David Morris (Senior Associate, Palo Alto); Peter Farrell (Tax); Lyman Paden (Partner, Houston); Chad Davis (Finance); Gail Stewart (Partner, Houston); Krisa Benskin (Senior Associate, Houston); Gabriela Alvarez (Employee Benefits); Erin Hopkins (Partner, Houston); Justin Clune (Associate, Houston); Taylor Lopez (Global Projects), Scott Janoe (Partner, Houston) and Mark Hamlin (Environmental).

Akin Gump Advises WildHorse Shareholder NGP Energy Capital Management with a team including John Goodgame, tax partner Jocelyn Tau and oil and gas associates Cynthia Angell and Litian Chen.

Vinson & Elkins advised WildHorse Resource Development Corporation with a team including partners Steve Gill and Doug McWilliams with assistance from senior associate Crosby Scofield and associates Claire Campbell, McCall Grimes, Sara Bloom, Andrianna Frinzi and Michael Pascual. Also advising were partners Lina Dimachkieh, David D’Alessandro, Larry Nettles, Hill Wellford, Billy Vigdor, Michael Holmes and Jeremy Marwell.

 

Involved fees earner: Stephen Gill – Vinson & Elkins LLP; Douglas McWilliams – Vinson & Elkins LLP; Crosby Scofield – Vinson & Elkins LLP; Claire Smyser Campbell – Vinson & Elkins LLP; McCall Grimes – Vinson & Elkins LLP; Sara Bloom – Vinson & Elkins LLP; Andrianna Frinzi – Vinson & Elkins LLP; Michael Pascual – Vinson & Elkins LLP; Lina Dimachkieh – Vinson & Elkins LLP; David D’Alessandro – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; Hill Wellford – Vinson & Elkins LLP; William Vigdor – Vinson & Elkins LLP; Michael Holmes – Vinson & Elkins LLP; Jeremy Marwell – Vinson & Elkins LLP; John Goodgame – Akin Gump; Cynthia Perez Angell – Akin Gump; Litian Chen – Akin Gump; Jocelyn Tau – Akin Gump; Clint Rancher – Baker Botts; Joshua Davidson – Baker Botts; Jamie Yarbrough – Baker Botts; Stephen Noh – Baker Botts; Josh Gonzales – Baker Botts; Mitch Athey – Baker Botts; Thomas Fina – Baker Botts; Richard Husseini – Baker Botts; Jon Lobb – Baker Botts; Tamar Stanley – Baker Botts; David Morris – Baker Botts; Peter Farrell – Baker Botts; Lyman Paden – Baker Botts; Chad Davis – Baker Botts; Gail Stewart – Baker Botts; Krisa Benskin – Baker Botts; Gabriela Alvarez – Baker Botts; Erin Hopkins – Baker Botts; Justin Clune – Baker Botts; Taylor Christian López – Baker Botts; Scott Janoe – Baker Botts; Mark Hamlin – Baker Botts; David Katz – Wachtell, Lipton, Rosen & Katz;

Law Firms: Vinson & Elkins LLP; Akin Gump; Baker Botts; Wachtell, Lipton, Rosen & Katz;

Clients: Chesapeake Energy Corporation; NGP Energy Capital Management, LLC; WildHorse Resource Development Corporation;