Private oil and gas company Northeast Natural Energy has entered into an amendment on Nov. 23 with its senior lending group led by EIG Global Energy Partners to extend the maturity of its current credit facility to December 2023 and provide significant additional liquidity to the company to execute on its go-forward business plan.
In connection with the amendment, the lead equity investors in the company, including Metalmark Capital, Wells Fargo and Prudential, have agreed to make an incremental equity contribution to the company of $65 million to help fund capital expenditures.
Northeast Natural Energy’s president and CEO Mike John acknowledged that “our team is very grateful for the confidence shown by our investors and lenders in expanding and extending their financial support of the company.”
“Mike John and the management team at NNE have done an amazing job at navigating the challenges of the commodity price decline with a relentless focus on costs and well level economics,” Greg Myers, partner at Metalmark Capital, said. “The company has grown substantially in recent years to having over 100 wells online with nearly 400MMcf/d of gross production and is well capitalized by its lenders and equity investors to continue its growth trajectory from this point forward.”
Northeast Natural Energy LLC, headquartered in Charleston, WV, is a private oil and gas company focused on natural gas drilling, exploration, acquisition and joint-venture opportunities in the Marcellus Shale. The principals of NNE have worked together in various capacities for over 30 years and possess a significant amount of knowledge and operational expertise in the Appalachian Basin, in particular the Marcellus Shale formation.