TPG Pace Energy to acquire Eagle Ford, Austin Chalk assets from EnerVest
EnerVest announced it has entered into definitive agreements to sell its Eagle Ford and Austin Chalk assets to TPG Pace Energy Holdings, an energy-focused special purpose acquisition entity led by former Occidental Petroleum Corporation CEO Steve Chazen, for approximately $2.66B in cash and stock. As part of the transaction, TPGE and EnerVest are partnering to create Magnolia Oil & Gas Corporation, a new company led by Chazen who will serve as Magnolia's full-time Chairman, President and CEO. The transaction is expected to close late in the second quarter of 2018. EnerVest Operating, L.L.C., will continue to operate the assets under a long-term arrangement, and EnerVest, Ltd., will provide certain additional corporate services to Magnolia. Upon closing, Magnolia will trade on the NYSE under a new ticker, and EnerVest will receive approximately $1.2M in cash and will retain roughly 120M shares of common stock.