ETX Energy Closes East Texas Acquisitions
TULSA, Oklahoma, April 21, 2020 – ETX Energy today announced that it has successfully closed the acquisitions (the “Acquisitions”) of approximately 1,500 Barrels of Oil Equivalent per day and 57,000 net acres of operated and non-operated leasehold interests in Houston, Madison and Trinity counties, Texas and associated gathering, processing, and saltwater disposal infrastructure. ETX acquired these assets from Burk Royalty Co., Ltd. and others. These acquisitions represent a 96% increase in ETX’s leasehold acreage position, a 71% increase in Proved Developed Reserves, and adds significant development potential from multiple producing formations. ETX now has approximately 117,000 net acres.
“ETX Energy’s employees did an amazing job negotiating and closing this transaction during these challenging times,” stated Ralph Hill, Chairman and CEO of ETX Energy. “Over the last several months, an already tough M&A market became even more difficult to navigate. ETX is pleased to add these assets to its growing portfolio. While the current state of the world offers many uncertainties, ETX is a natural consolidator in this part of East Texas as well as in the Eastern Eagle Ford area where it holds substantial acreage in Brazos, Burleson, Grimes and Madison counties. ETX is positioned with a minor amount of long-term debt and has the capacity to continue to consolidate when the right opportunities are found, even in this environment.”
ETX Energy was represented by Evercore Group and Baker Botts L.L.P. during this transaction. Burk Royalty Co. Ltd. was represented by Locke Lord LLP during this transaction.
About ETX Energy
ETX Energy is based in Tulsa, Oklahoma, and owns, manages and operates upstream and midstream energy projects in Southeast Texas, with its activity primarily focused in the Eastern Eagle Ford. While currently focused on the Eastern Eagle Ford, ETX is highly experienced in numerous basins across the nation and exercises financial discipline in all its activities.