Merger: WildHorse/Chesapeake would give NGP, Carlyle, KKR stakes in new company


[Context: NGP-backed WildHorse Resource Development (NYSE: WRD) announced plans to merge with Chesapeake Energy (NYSE: CHK) in a deal that would see WildHorse shareholders owning 45% of the new entity. As of December 31, 2017, NGP controlled 70.7% of WildHorse’s common stock, according to SEC filings. If the merger goes through, NGP will control approximately 31.5% of Chesapeake. Carlyle, which owns a stake in NGP, also holds preferred shares that represents 24% of WildHorse’s common stock on a converted basis. KKR also held a 5% stake in WildHorse. Further details, advisors and related links are below.]

WildHorse Resource  | Chesapeake Energy | NGP  | Carlyle  | KKR 



WildHorse Holdings, Esquisto Holdings, Acquisition Co. Holdings, NGP XI US Holdings, L.P. (“NGP XI”), and management directly own 21.0%, 38.3%, 2.5%, 8.9% and 2.6%, respectively, of our common stock. WildHorse Holdings, Esquisto Holdings and Acquisition Co. Holdings are controlled by NGP. Carlyle beneficially owned 435,000 shares of Preferred Stock, which, based on the conversion rate as of December 31, 2017, represented approximately 24.3% of our common stock on an as converted basis. NGP and its affiliates (through WildHorse Holdings, Esquisto Holdings, Acquisition Co. Holdings and NGP XI) beneficially own approximately 70.7% of our common stock. Based solely on the Schedule 13G filed on February 5, 2018 with the SEC by KKR, KKR owned approximately 5.5% of our common stock as of June 30, 2017.

Deal Announcement: Chesapeake Energy Corporation Accelerates Strategic Plan With Acquisition Of WildHorse Resource Development Corporation For A Combination Of Chesapeake Common Stock And Cash