Silver Run Acquisition Corporation II Completes its Business Combination
OREANDA-NEWS. February 12, 2018. Silver Run Acquisition Corporation II (“Silver Run II”) (NASDAQ:SRUN) (NASDAQ:SRUNU) (NASDAQ:SRUNW) today announced that it completed its business combination with Alta Mesa Holdings, LP (“Alta Mesa”) and Kingfisher Midstream, LLC (“Kingfisher”). Alta Mesa is an independent exploration and production company focused on the development and acquisition of unconventional oil and natural gas reserves in the Anadarko Basin. Kingfisher is a company engaged in providing certain midstream energy services, including crude oil and gas gathering, processing and marketing to producers of natural gas, natural gas liquids, crude oil and condensate in the STACK Play region of Oklahoma. The transaction was approved by the board of directors of Silver Run II and was approved at a special meeting of Silver Run II’s stockholders on February 6, 2018 by 98.43% of stockholders voting in person or by proxy at the special meeting. In connection with the closing of the transaction, Silver Run II has been renamed Alta Mesa Resources, Inc. (“Alta Mesa Resources”), and its common stock and warrants will be traded on the NASDAQ Capital Market under the symbols “AMR” and “AMRRW,” respectively, beginning on February 12, 2018.
The size of Alta Mesa Resources’ board of directors has been increased from four members to eleven members, and consists of James T. Hackett, Harlan H. Chappelle, Michael E. Ellis, David M. Leuschen, Pierre F. Lapeyre, Jr., William W. McMullen, Don Dimitrievich, William D. Gutermuth, Jeffrey H. Tepper, Diana J. Walters and Donald R. Sinclair.
Following the closing, Riverstone Holdings LLC (“Riverstone”) and Alta Mesa management collectively own a significant portion of Alta Mesa Resources, representing approximately 33% of Alta Mesa Resources’ market capitalization. In addition, the equity holders of Kingfisher collectively own approximately 14% of Alta Mesa Resources’ market capitalization.
In connection with the closing, Alta Mesa entered into an amended and restated senior secured revolving credit facility that provides for an aggregate of $1.0 billion with an initial $350.0 million borrowing base limit. Kingfisher is also a party to a $200 million revolving credit facility. As of the closing, neither Alta Mesa nor Kingfisher has any outstanding borrowings under their respective credit facilities or letter of credit reimbursement obligations.
Citigroup Global Markets Inc. acted as capital markets advisor to Silver Run II. Latham & Watkins LLP acted as legal counsel to Riverstone and Silver Run II. Haynes and Boone, LLP acted as legal counsel to Alta Mesa. Bracewell LLP acted as legal counsel to Kingfisher. Kirkland & Ellis LLP acted as legal counsel to Bayou City Energy Management LLC (“BCE”).
About Alta Mesa Resources
Alta Mesa Resources is the successor of Silver Run II, and its strategy following the transaction is to focus on the development and acquisition of unconventional oil and natural gas reserves in the Anadarko Basin through Alta Mesa and to provide midstream energy services, including crude oil and gas gathering, processing and marketing, to producers of natural gas, natural gas liquids, crude oil and condensate in the STACK Play region of Oklahoma through Kingfisher. For more information, please visit http://altamesa.net/.
Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with over $37 billion of capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power, and renewable sectors of the energy industry. With offices in New York, London, Houston, and Mexico City, Riverstone has committed over $36 billion to more than 130 investments in North America, Latin America, Europe, Africa, Asia, and Australia.
About HPS Investment Partners, LLC
HPS Investment Partners, LLC (“HPS”) is a leading global investment firm with a focus on non-investment grade credit. Established in 2007, HPS has approximately 100 investment professionals and over 200 total employees, and is headquartered in New York with ten additional offices globally.
BCE is a private equity firm founded in 2015 to focus on making investments in the North American upstream oil and gas sector. BCE targets privately negotiated investments through two complementary strategies: providing buyout and growth equity capital for operators with current production and exploitable upside, and partnering with operators to provide dedicated drilling capital in off-balance sheet structures.