Sanchez Energy Corporation (SN) is a leading independent company in the exploration and production sector. The company emphasizes development and acquisition of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast. Currently, Sanchez Energy Corp. is targeting the Eagle Ford Shale, South Texas.
Recently, the shale driller announced that it has signed a partnership agreement with Blackstone, a private equity leader, in a bid to acquire Eagle Ford’s Anadarko Petroleum’s shale assets. Blackstone, the global investment leader, believes in creating a positive economic impact for investors in the long run. The firm also aims to uplift the communities in which it works.
Right after the partnership was revealed, Sanchez’s shares soared up 22%. The joint venture features a 50-50 partnership between Blackstone and Sanchez, and targets the acquisition of around 318,000 acres spread across the western Eagle Ford shale from Anadarko Petroleum. The acquisition is reportedly worth US$ 2.3 Bn.
Angelo Acconcia, Senior MD, Blackstone Energy Partners, says, “We are very pleased to acquire – in partnership with Sanchez Energy, a uniquely positioned and best-in-class Eagle Ford operator – these world-class Eagle Ford oil and gas shale assets from Anadarko.”
He further added, “This partnership and transaction is in consistence with Blackstone’s glorious history. Focus on partnerships with oil and gas companies will help us accomplish strategic transactions and achieve significant growth capital to realize the long-term value associated with the company’s assets.”
According to Acconcia, the company’s strong experience and impeccable success in oil and gas sector’s investments will continue to create a confident and favorable investment environ for the company.
While Blackstone looks forward to this partnership with Sanchez, it will continue to grow through future acquisitions. Experts say that this deal is going to be quite transformative for Sanchez Energy, as it will possibly spike up the company size and scale to a significant level soon. This partnership is considered to be a director to the company’s future growth while enabling the company to live within cash flow at the current commodity prices. Sanchez will now gain a pace that would create tremendous value for investors.