BCE-Mach III’s $320 Million Acquisition of Assets of Alta Mesa Holdings and Kingfisher Midstream


Kirkland & Ellis LLP as legal advisor to BCE-Mach III on the transaction.

BCE-Mach III LLC, the third partnership between Bayou City Energy Management LLC (“BCE”) and Mach Resources LLC (“Mach”), has executed Purchase and Sale Agreements to acquire substantially all of the upstream oil and gas assets of Alta Mesa Holdings, LP and its subsidiaries (“AMH”), and the midstream assets of Kingfisher Midstream, LLC and its subsidiaries (“KFM”) as part of the sellers’ Chapter 11 bankruptcies and associated 363 sale processes.

The purchase agreements provide that BCE-Mach III will acquire approximately 30 Mboe/d of production (67 percent liquids), approximately 72 MMboe of proved reserves, more than 900 operated wells, and 130,000 net acres (90 percent HBP) from AMH 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 KFM for a combined purchase price of $320 million with a Jan. 1, 2020 effective date.

Founded in January 2017 and located in Oklahoma City, OK, Mach is an independent oil and natural gas producer focused on acquiring, exploring and developing high-return, low-cost projects.

BCE-Mach III is being represented by UBS Securities LLC as financial advisor.

The Kirkland team was led by transactional partners Andy Calder (Picture), David Castro, Cyril Jones and Chris Heasley and restructuring partners Josh Sussberg and Greg Pesce and included transactional associates Lindsey Jaquillard and Patrick Y. Moneypenny; restructuring partner Christopher Hayes and associate Scott Vail; debt finance partners Andy Veit and Jordan Roberts; litigation partner Jamie Aycock and associate Rebekah McEntire; and tax partner David Wheat and associate Joe Tobias.

Involved fees earner: Jamie Aycock – Kirkland & Ellis; Andrew Calder – Kirkland & Ellis; David Castro – Kirkland & Ellis; Christopher Hayes – Kirkland & Ellis; Chris Heasley – Kirkland & Ellis; Lindsey Jaquillard – Kirkland & Ellis; Cyril Jones – Kirkland & Ellis; Rebekah McEntire – Kirkland & Ellis; Patrick Moneypenny – Kirkland & Ellis; Gregory Pesce – Kirkland & Ellis; Jordan Roberts – Kirkland & Ellis; Joshua Sussberg – Kirkland & Ellis; Joe Tobias – Kirkland & Ellis; Scott Vail – Kirkland & Ellis; Andy Veit – Kirkland & Ellis; David Wheat – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Bce-Mach LLC;

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Author: Ambrogio Visconti