Silver Run merging with Alta Mesa and Kingfisher Midstream into $3.8B company
Silver Run Acquisition has entered into definitive agreements to combine with Alta Mesa Holdings and Kingfisher Midstream. Alta Mesa is an independent exploration and production company with assets located in the STACK play in Oklahoma. Kingfisher is a company engaged in the gathering, processing, and marketing of hydrocarbons in the STACK play. Founded in 1987 and based in Houston, Texas, Alta Mesa is a pure-play exploration and production company focused on the STACK play in the Anadarko Basin. Kingfisher Midstream is a private midstream company with a leading position in the STACK play, with Alta Mesa serving as its anchor producer. At consummation of the transaction, Silver Run II is expected to be renamed Alta Mesa Resources and trade on the NASDAQ stock exchange under the ticker symbol "AMR". James T. Hackett, Chairman and CEO of Silver Run II, will serve as Executive Chairman following the consummation of the business combination, while Harlan H. Chappelle, Michael E. Ellis, and Michael A. McCabe will continue as CEO, COO and CFO of Alta Mesa Resources, respectively. Alta Mesa Resources will have an aggregate market capitalization of approximately $3.8B. At $10.00 per share, the combined company would represent a valuation of 7.1x FV/2018E EBITDA. Riverstone and Alta Mesa management will collectively own a significant portion of the combined company, representing approximately 34% of the pro-forma market capitalization. The transaction is subject to the approval of Silver Run II stockholders and the satisfaction or waiver of other customary closing conditions. The transaction is expected to close in Q4.