McClendon's American Energy Partners combines Marcellus, Utica affiliates
McClendon's American Energy Partners combines Marcellus, Utica affiliates
OKLAHOMA CITY, Oklahoma -- Creating one of the largest pure-play Appalachian E&P companies in the U.S., American Energy Partners affiliates American Energy – Utica (AEU) and American Energy – Marcellus (AEM) have announced that they will combine in an all-stock transaction.
Upon completion of the transaction, current AEU and AEM shareholders will own all of the common equity of newly formed American Energy Appalachia Holdings (AEA). AEU and AEM will remain wholly owned subsidiaries of AEA and their existing debt and convertible debt securities remain unaffected.
As a result of the transaction, AEA will operate a strong position of over 300,000 net acres in the Utica and Marcellus shale plays located in eastern Ohio and northern West Virginia.
AEU and AEM’s attractive positions in each of these respective plays and their complementary nature will allow AEA to maximize returns by realizing administrative and operational efficiencies and combining downstream marketing efforts and opportunities.
AEA had estimated proved reserves of 1.5 Tcf equivalent (77% gas) and estimated daily production of approximately 167 MMcf equivalent (79% gas) for the quarter ended September 30, 2014.
American Energy Partners was founded by Aubrey McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the U.S.
