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.
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