Leading global private equity firms KKR and Riverstone Holdings LLC have announced the signing of a definitive agreement to merge the existing assets held by KKR Natural Resources Funds (KNR) with the assets of Legend Production Holdings LLC, a portfolio company of Riverstone, to create a new oil and gas company called Trinity River Energy LLC. Financial terms of the transaction were not disclosed.
Trinity will be headquartered in Fort Worth, Texas, led by Chris Hammack (the current president and CEO of Legend) and jointly owned by KNR and Riverstone. Trinity's operations executive team will be based in Fort Worth while its finance, accounting and information technology executive team will be based in Houston.
The transaction brings together the highly complementary producing properties and acreage positions of the existing KNR and Legend assets, creating one of the largest operators in the Barnett Shale, with approximately 258 mmcfe/d of gross production in the basin. In addition to a large natural gas inventory in the Barnett Shale, Trinity will also have liquid-rich properties in the Permian Basin, East Texas, South Texas, Louisiana and Mississippi.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the third quarter of 2014. KKR's investment in Trinity is being made by KNR. Future KNR acquisitions made with Fleur de Lis Energy LLC will not be acquired by or otherwise form part of Trinity.
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