Hawkwood Energy LLC agreed to be acquired by WildFire Energy I LLC in a transaction that the Denver-based private Eagle Ford operator said values it at approximately $650 million.

Founded in 2012 with a line-of-equity commitment from lead investors Warburg Pincus and Ontario Teachers’ Pension Plan, Hawkwood has since accumulated over 160,000 net acres in the Eagle Ford shale play in East Texas. The company was ranked by Hart Energy’s Oil and Gas Investor as a top 100 private E&P and the #3 private operator in the Eagle Ford play in terms of production.

“We are proud of what Hawkwood has accomplished since entering the Eagle Ford and believe that joining with WildFire is the next logical step in our evolution,” commented Hawkwood CEO Jim Addison in a company release on July 8.

Hawkwood’s operations include over 375 operated wells producing more than 19,000 net boe/d (85% oil). A majority of its leasehold in East Texas is located in Brazos and Burleson counties with additional acreage in Leon, Madison and Robertson counties.

Hawkwood Energy Operations Map
(Source: Hawkwood Energy LLC)

The terms of its transaction with WildFire weren’t disclosed. However, as part of the agreement, Hawkwood’s existing shareholders will retain a roughly 50% equity interest in the combined company. Further, the company release noted that the transaction attributes an enterprise valuation to Hawkwood of approximately $650 million.

The combined entity will retain the WildFire Energy name and operated by the WildFire management team post-closing, set for the third quarter.

According to the release, WildFire’s management team, led by CEO Anthony Bahr who formerly served as president of WildHorse Resources Development, has extensive experience in the Eagle Ford having previously managed WildHorse until its sale to Chesapeake Energy in 2019 for nearly $4 billion.

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WildFire was formed in 2019 with funding from Warburg Pincus, Kayne Anderson and management to pursue production-weighted oil and gas assets in onshore U.S. basins, seeking to efficiently optimize and develop reserves using modern technologies and its extensive operating experience.

WildFire’s management team and private equity sponsor Kayne Anderson, which provided a “significant equity investment” for the transaction, will control the remaining 50% in the combined company.

In a statement commenting on the transaction, Mark Teshoian, managing partner at Kayne Anderson, said: “Enabled by its strong balance sheet, WildFire will actively pursue attractive risk/reward opportunities both through the drill-bit and via accretive acquisitions.”

“We look forward to continuing our partnership with the WildFire team as they enter this next stage,” he added.

In addition to Bahr as CEO, WildFire’s remaining management team includes former WildHorse COO Steve Habachy and the company former CFO Drew Cozby.

Bahr also added: “The improving environment for oil and gas presents exciting opportunities for WildFire and we are pleased to have the backing of our sponsors to go pursue them.”

Onshore