Riverstone Holdings LLC Announces Sale of Rock Oil Holdings LLC to SM Energy Company

Riverstone Holdings LLC has announced the signing of a definitive agreement pursuant to which Riverstone Global Energy and Power Fund V, L.P. and minority partners have agreed to sell Rock Oil Holdings LLC, a Houston- and Denver-based oil and gas company focused in the Permian Basin, to SM Energy Company, a Denver-based oil and gas company, for US$980 million in cash. The transaction is subject to customary closing conditions and is expected to close in early October.

Rock Oil was formed in March 2014 with the strategy of applying Rock Oil's land and technical expertise to the acquisition and development of assets in top-tier North American unconventional oil plays. Since its formation, the Company has entered into a series of acquisitions to establish a position of approximately 24,783 net acres in the Midland Basin component of the Permian. The Company, which has been actively executing upon a horizontal development program in Howard County, TX, currently produces approximately 4,900 boepd.

Jefferies served as lead financial advisor to Rock Oil and Riverstone Holdings LLC on this transaction.  Petrie Partners also acted as a financial advisor to Rock Oil.  Latham & Watkins LLP acted as legal counsel to Rock Oil and Riverstone.

Rock Oil's Chairman and CEO Kyle R. Miller commented:

"We are very pleased by the successful execution of our stated strategy of building and developing a concentrated position in the core of a leading North American producing basin.  Our ability to drive value in a challenging commodity price environment is a testament to the quality and technical expertise of the Rock Oil team and our strong and supportive working relationship with Riverstone.  We wish SM Energy success with these world class Permian assets." 

John Lancaster, Partner and Managing Director at Riverstone, commented:

"We at Riverstone have been thrilled to work in partnership with Kyle Miller, Jason Cansler and their colleagues in building Rock Oil and its excellent position in the Midland Basin.  The team relied on its deep wealth of industry relationships and its technical expertise to define and assemble a core acreage position in Howard County, which offers some of the most attractive upstream returns in North America."