Venado’s $765 million acquisition of Eagle Ford Shale assets of Cabot Oil & Gas


Scotiabank served as financial advisor and Norton Rose Fulbright US LLP served as legal counsel to Cabot on the Eagle Ford Shale transaction. Kirkland & Ellis LLP served as Venado’s legal counsel on the Eagle Ford Shale transaction.

Cabot Oil & Gas Corporation has reached an agreement to sell its operated and non-operated Eagle Ford Shale assets to an affiliate of Venado Oil & Gas LLC for $765 million. The divestiture includes approximately 74,500 net acres (~65,100 operated and ~9,400 non-operated) of Eagle Ford Shale leasehold primarily located in Frio and Atascosa counties. Production from these properties during the third quarter of 2017 was 15,656 barrels of oil equivalent (Boe) per day. This transaction is expected to close during the first quarter of 2018, subject to customary closing conditions and adjustments. Separately, the Company announced the sale of its remaining East Texas assets to an undisclosed buyer. This transaction is expected to close on or before July 1, 2018, subject to customary closing conditions and adjustments.

Cabot expects to record a non-cash, after-tax impairment on the Eagle Ford Shale assets of approximately $270 to $280 million (based on estimated net book value as of November 30, 2017) in the fourth quarter of 2017.

Kirkland & Ellis advised Venado with a team including David Castro Jr. (Picture) and Anthony Speier and associate Lindsey Jaquillard, with assistance from environmental partners Paul Tanaka and Stefanie Gitler and associate James Dolphin, tax partner Chad McCormick and associate Joe Tobias, and labor and employment/executive compensation partners Jeffrey Quinn, Michael Krasnovksy and Edward Holzwanger.

Involved fees earner: David Castro – Kirkland & Ellis; Anthony Speier – Kirkland & Ellis; Lindsey Jaquillard – Kirkland & Ellis; Paul Tanaka – Kirkland & Ellis; Stefanie Gitler – Kirkland & Ellis; James Dolphin – Kirkland & Ellis; Chad McCormick – Kirkland & Ellis; Joe Tobias – Kirkland & Ellis; Jeffrey Quinn – Kirkland & Ellis; Michael Krasnovsky – Kirkland & Ellis; Edward Holzwanger – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Venado Oil and Gas, LLC;

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Author: Ambrogio Visconti