TPG Pace Energy announced that its shareholders have approved the previously announced business combination with EnerVest's South Texas Division at the special meeting of shareholders held. Additionally, the company announced that it will have in excess of $655M in its trust account from its May 2017 initial public offering as well as the $355M raised in a March private placement to complete the business combination. The company's board of directors had previously approved the business combination. In addition to approving the business combination, the company's shareholders approved the proposals to amend the company's amended and restated certificate of incorporation, including changing the name of the company to "Magnolia Oil & Gas Corporation," and all of the other proposals included in the definitive proxy statement filed by the company with the Securities and Exchange Commission on July 2.
TPG Pace Energy Holdings filed a definitive proxy statement with respect to its business combination with EnerVest's South Texas Division. The special meeting of stockholders will be held at 9:00 a.m. Eastern Standard Time, on July 17. TPGE expects the business combination to close on July 31, subject to the satisfaction of customary closing conditions, including the approval of the business combination by TPGE's stockholders at the special meeting. In connection with the consummation of the transaction, on August 1,TPGE will be renamed Magnolia Oil and Gas,its Class A common stock will trade on the NYSE under the ticker symbol "MGY" and it will start implementing Steve Chazen's objective of maximizing shareholder returns by generating steady production growth, strong pre-tax margins in excess of industry norms and significant free cash flow.
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.
TPG Pace Energy announced it has entered into definitive agreements with certain funds managed by EnerVest to acquire the oil and gas assets within EnerVest's South Texas Division 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 Steve Chazen who will serve as Magnolia's full-time chairman, president and CEO. EnerVest will retain a significant ownership stake in Magnolia. The transaction is subject to approval by the TPGE shareholders and other customary closing conditions, and the new company will trade on the NYSE under a new ticker upon closing, which is expected to occur late in the second quarter of 2018. The formation of Magnolia creates a large-scale, pure-play South Texas operator with top-tier Eagle Ford and Austin Chalk asset positions with more than 40,000 boe per day of production. Magnolia will acquire EnerVest's approximately 360,000 total net acres in South Texas, which consists of approximately 14,000 net acres in one of the most prolific sections of Karnes County and 345,000 net acres in the emerging, high-growth potential Giddings Field. The acreage position is almost entirely held by production, and the production from the combined asset base is heavily weighted toward oil.