Deal Description: July 5, 2016 – Sanchez Production Partners LP (NYSE: SPP) announced that the partnership has executed an agreement with Sanchez Energy Corporation (NYSE: SN) pursuant to which SPP has acquired Sanchez Energy's 50% interest in Carnero Gathering, LLC, a joint venture that is 50% owned by Targa Resources Corp. (NYSE: TRGP).
The consideration from SPP to Sanchez Energy for the transaction includes:
- An initial payment of approximately $37 million in cash
- The assumption of Sanchez Energy's remaining capital commitments to Carnero Gathering, which are estimated at approximately $7.4 million; and
- Future payments that are dependent upon the achievement of certain volume, transportation fee and delivery targets.
- Baker Botts represented Stifel, the sole financial advisor to the Conflicts Committee, in the drop down.
For more information, please see Sanchez Production Partners’ news release by clicking here.
ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm of approximately 725 lawyers practicing throughout a network of 13 offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy and technology sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.