Bracewell and Willkie Farr & Gallagher are advising Houston, Tx.-based Juniper Capital Advisors on a $188.4 million investment in Penn Virginia Corporation, an independent oil and gas company developing south Texas shale field Eagle Ford.
Kirkland & Ellis and Gibson, Dunn & Crutcher are advising Penn Virginia on the transaction, which, after its expected close in 2021’s first quarter, gives Juniper an approximately 59% share of Penn Virginia’s equity.
The transaction more than doubles Penn Virginia’s market capitalization and pays down well over $100 million of its debt, while improving the company’s cash flow and drilling inventory, according to a statement.
Edward Geiser, Juniper’s Managing Partner, said Juniper has extensive experience in the Eagle Ford field through its portfolio company, Rocky Creek Resources.
“Penn Virginia provides a unique opportunity, as it is one of a few small-cap producers that can modestly grow production while still generating free cash flow due to its top-tier asset base and access to premium Gulf Coast pricing,” Geiser said.
To contact the correspondent on this story: Rick Mitchell in Paris at rmitchell@correspondent.bloomberglaw.com
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