Santos Limited’s $2.15 Billion Acquisition of Quadrant Energy

Clayton Utz has advised a consortium of sellers led by Brookfield and Macquarie on the US$2.15 billion sale of Quadrant Energy to Santos Limited.

The acquisition of Quadrant is fully aligned with Santos’ growth strategy to build on existing infrastructure positions around the company’s core assets.

Quadrant Energy holds natural gas and oil production, near and medium term development, appraisal and exploration assets across more than 52,000 km2 of acreage, predominantly in the Carnarvon Basin offshore WA, Australia’s largest offshore oil and natural gas province.

Quadrant’s share of production from the assets in 2017 was 19 million barrels of oil equivalent (mmboe). 2P reserves at the end of 2017 were 220 mmboe (~75% developed).

Quadrant’s conventional natural gas assets include significant portfolio overlap with Santos, providing opportunity to realise material combination synergies estimated at US$30-50 million per annum.

The acquisition is fully funded from existing cash resources and US$1.2 billion in new committed debt facilities. Santos had US$1.5 billion in cash on hand as at 30 June 2018.

The new committed debt facilities comprise a US$600 million five and a half-year bank term loan facility and a US$600 million two-year bridge facility. It is intended that the bridge facility will be refinanced post-completion of the acquisition.

Clayton Utz has advised a consortium of sellers led by Brookfield and Macquarie with a team including Emma Covacevich (Picture) and Stuart Byrne led the transaction along with Peter Feros. Other core team members included Ben Cansdale, Johnson Lo, Katy Warner, Kwan Leung, Kaz Field and Andrew Lassman.

 

Involved fees earner: Emma Covacevich – Clayton Utz; Stuart Byrne – Clayton Utz; Ben Cansdale – Clayton Utz; Johnson Lo – Clayton Utz; Peter Feros – Clayton Utz;

Law Firms: Clayton Utz;

Clients: Brookfield; Macquarie Group;

 

Author: Michael Patrini