Acquisition: Kalnin Ventures buying Devon’s Barnett assets for $770m

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[Context: On December 17, Kalnin Ventures, an investment vehicle of Thailand-based Banpu Pcl, a coal mining and power gen company, announced a deal to acquire Barnett shale assets from Devon Energy (NYSE: DVN) for $770m. Kalnin paid $1,289 per flowing Mcf or $0.19 per Mcf of proved reserves based on figures in the release. Further details, advisors and related links are below.]


Kalnin Ventures Signs Barnett Shale Acquisition

$770 Million Deal Expands Kalnin Presence Into Barnett Shale

DENVER, Dec. 17, 2019 (GLOBE NEWSWIRE) — Kalnin Ventures LLC (“Kalnin”) today announced that an affiliate of its investment vehicle BKV Oil & Gas Capital Partners, L.P. (“BKV”), has entered into a Purchase and Sale Agreement to acquire Devon Energy Corp.’s (NYSE: DVN) (“Devon”) assets in the Barnett Shale. The expected closing date is in 2020, subject to customary closing conditions, and the overall transaction is worth $770 million.

BKV is financially backed by its sole investor, Banpu Pcl, a Thailand-based coal mining and power-generation company with total assets of approximately $8 billion.

The transaction with Devon includes over 320,000 gross acres and 4,200 producing wells, making BKV the largest natural gas producer in the Barnett Shale. This acquisition marks the BKV’s seventh major transaction and first position in the Barnett Shale play. BKV has invested or committed over $1.3 billion since its formation 2015.

Net production from the Barnett Shale properties averaged 597 million cubic feet equivalent per day in the third quarter of 2019. At year-end 2018, proved reserves associated with these properties amounted to approximately 4 trillion cubic feet equivalent.

“We are excited to announce this acquisition in the Barnett Shale, as this continues our strategy of PDP weighted cash flow yielding investments, where we can leverage technology to drive operational performance,” said Christopher Kalnin, CEO of BKV. “Devon has done wonderful work in the Barnett Shale and we look forward to continuing that tradition, delivering high-quality returns for many years to come.”

About Kalnin Ventures

Kalnin Ventures is a values-driven firm that believes that the combination of visionary strategy, focus on execution, and balance in day-to-day life are the keys to creating long-term sustainable value.

Kalnin Ventures is backed by investors with significant equity commitments from Banpu Pcl and seeks to invest in attractive upstream oil and gas opportunities in North America with the goal of creating long-term sustainable value in the energy industry.

About Banpu

Banpu Public Company Limited is listed on the Stock Exchange of Thailand and is one of the energy leaders in the Asia-Pacific region with widespread experience in a variety of domestic and international energy industries. Banpu is focused on developing and investing in coal, power generation, natural gas and alternative energy, with investments located in Thailand, Indonesia, China, Australia, Lao PDR, Mongolia, Singapore, Japan and the United States.

Advisors

Jefferies and Citi acted as financial advisor to Devon on the Barnett Shale transaction. Vinson & Elkins LLP acted as legal advisor to Devon.

Willkie Farr & Gallagher LLP acted as legal advisor to BKV.

Related Links