Citizen Energy closed its first acquisition of 2022, giving the Tulsa, Okla.-based company what it called a “dominant Midcontinent footprint” by acquiring substantially all assets owned by Red Bluff Resources and Bricktown Energy.

The deal raises Warburg Pincus-backed Citizen’s average daily production by 18% to average production of 86,000 boe/d from more than 720 operated wells across the Anadarko Basin. The company will also hold 326,000 net acres, 98% HBP. Citizen’s projected next 12-month EBITDAX is expected to range between $750 million and $800 million, the company said in a June 29 press release.

A private company, Citizen said in the release it expects the acquisition to be “highly accretive to shareholder returns” and that it sets it on a trajectory to becoming one of the top private producers in the U.S.

The company’s press release did not specify the purchase price of Red Bluff and Bricktown’s assets. Citizen didn’t immediately respond to a request for comment. 

Hart Energy July 2022 - Citizen Energy Red Bluff Resources Bricktown Energy acquisition map
Map of Citizen Energy transaction acreage. (Graphic: Business Wire)

In the release, Citizen did report it had closed $250 million in senior secured second lien notes to fund the acquisition and pay down its revolving credit facility. The company secured the financing from private funds managed by EIG.

The deal, with an effective date of April 1, adds:

  • 13,000 boe/d, 56% liquids;
  • 200 operated wells;
  • 739 nonoperated wells; and
  • 80,000 net acres.

It was the company’s first deal since the Dec. 31 closing last year of a $153 million acquisition for 28,000 net acres in Oklahoma’s Blaine, Canadian and Kingfisher counties. 

Citizen Energy describes itself as an integrated oil and natural gas company located in Oklahoma and primarily targeting the Meramec and Woodford shale formations. The company is the successor of Roan Resources, which Citizen took private in a $1 billion all-cash acquisition that closed in 2019.

Citizen also operates about 213 miles of natural gas gathering pipelines, 225 MMcf/d of gas processing capacity, and roughly 103 miles of water gathering pipelines.

Baker Botts served as legal counsel for the buyers for the June 30 transaction. Kirkland & Ellis served as legal counsel and JPMorgan served as the exclusive financial adviser for the sellers.