WildFire Energy recently closed on the acquisition of MD America Energy (MDAE), adding onto the Houston-based independent E&P’s growing position in the Eagle Ford Shale.

MDAE is a Fort Worth, Texas-based E&P company with approximately 45,000 net acres, 200 operated wells and 3,200 boe/d (85% liquids) of production in the East Texas Eagle Ford. The company completed a financial restructuring and emerged from voluntary Chapter 11 protection in December 2020.

The deal follows WildFire’s successful acquisition of private Eagle Ford operator Hawkwood Energy LLC for $650 million in August 2021 marking WildFire’s entry into the South Texas shale play. The financial terms of the MDAE transaction were not disclosed.

“As the second major acquisition closed in less than six months, WildFire is fulfilling its vision as a lead consolidator in the eastern Eagle Ford,” Steve Habachy, president and COO of WildFire Energy, commented in a company release on March 7.

WildFire Energy is an independent energy platform company in 2019 with funding from Warburg Pincus, Kayne Anderson and management to acquire and optimize production-weighted oil and gas assets. In addition to Habachy, WildFire is led by CEO Anthony Bahr and CFO Drew Cozby.

“The drive and energy of our team has been relentless in boosting production, identifying efficiencies, and growing the contiguous acreage position,” Habachy said. “With an oil-weighted asset and a core position in this part of the basin, we are well-positioned to acquire more value-accretive assets in our area.”

With the acquisition, WildFire ­­will operate 556 gross wells on 210,000 net acres in the eastern Eagle Ford encompassing Burleson, Brazos, Robertson, Madison, Lee and Grimes counties of Texas. The combined entity is expected to produce roughly 16,000 net boe/d (91% liquids) in 2022, according to the release.

“With the closing of this strategic acquisition, WildFire Energy will bring more barrels to market from a previously dormant program at a crucial time for the world economy,” WildFire’s CEO, Bahr, added in the release. “In addition, with this adjacent acquisition, WildFire will be able further leverage economies of scale optimizing production in an efficient and sustainable manner.”

WildFire funded the acquisition of MDAE with equity contributions from sponsors, Warburg Pincus and Kayne Anderson, and the company’s upsized revolving credit facility. Locke Lord LLP served as the legal advisers for WildFire Energy for the transaction.

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