Vantage to acquire Williston basin assets from QEP Resources


DENVER -- Vantage Energy Acquisition Corp., an energy-focused special purpose acquisition entity led by Roger Biemans, former chairman and CEO of Vantage Energy LLC, and president of Encana Oil & Gas, has announced that it has entered into definitive agreements with QEP Energy Company, a wholly owned subsidiary of QEP Resources, Inc., to acquire the entirety of QEP’s Williston basin assets in North Dakota and Montana, which includes the South Antelope and Fort Berthold leasehold and various mineral interests, for $1.65-billion cash consideration, prior to post-effective date adjustments, and up to 5.8 million shares of Vantage common stock if certain stock price targets are achieved.

Upon closing the transaction, Vantage Energy Acquisition Corp. will change its name to Vantage Energy Inc., which will be led by Biemans as Vantage’s full-time chairman, president and CEO. In addition to Biemans’ leadership and the rest of the current Vantage team, Vantage expects to retain a significant portion of QEP’s High Plains business unit team, including operations, engineering, geoscience, land, administrative and finance groups.

The transaction is subject to approval by VEAC shareholders and other customary closing conditions, and the new company will trade on the NASDAQ under the ticker “VEI” upon closing, which is expected to occur late in the first quarter or early in the second quarter of 2019.

The formation of Vantage creates a large-scale, pure-play Williston basin operator with strong free cash flow and low-risk growth opportunities. The acquired assets consist of more than 100,000 net acres and are currently producing at the rate of 46,000 boed. We believe the combination of outstanding cash margins, a robust base of oil-weighted production and an attractive set of development drilling and refrac projects with attractive economics will position Vantage to deliver exceptionally efficient growth in both EBITDA and free cash flow. We believe these attributes position Vantage as a highly-differentiated opportunity for investors seeking capital efficiency and return of capital to shareholders.

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