Prominent independent exploration firm, Hawkwood Energy LLC or Hawkwood, has reportedly disclosed its entry into a definitive agreement, in a bid to be acquired by leading energy platform company, WildFire Energy LLC or WildFire. The move comes in the wake of an enterprise valuation of nearly $650 million to Hawkwood.
Following the transaction, the existing shareholders of Hawkwood would retain approximately 50% equity interest in WildFire, with around 50% owned by WildFire's management team as well as Kayne Anderson, its private equity sponsor.
For the record, Hawkwood Energy focuses on economically building oil and natural gas resources in the Eagle Ford Basin of East Texas. Meanwhile, WildFire Energy is an independent firm led by Anthony Bahr, its CEO, Steve Habachy, its President/COO, and Drew Cozby, its CFO, which was formed to acquire as well as optimize the production-weighted oil and gas assets.
The combined entity would reportedly retain the WildFire Energy name. The WildFire team, post-closing, will operate the assets and apply all their wide experience in the Eagle Ford. The team has previously handled WildHorse Resource Development Corp. up until its sale to Chesapeake Energy for nearly $4 billion in 2019.
According to the CEO of Hawkwood, Jim Addison, the team has expressed pride regarding the company’s accomplishments since its entry into Eagle Ford and believes that teaming up with WildFire would be the next logical step in its evolution. He further mentioned that the company was impressed by the team's extensive knowledge and experience across this basin whilst expressing excitement for the upcoming opportunities.
The CEO of WildFire, Anthony Bahr, also quoted that the team was looking forward to leveraging its prior experience to Hawkwood, in order to carry forward the team's track record of profitable and efficient operations.
According to sources with knowledge of the matter, the transaction is anticipated to close during the third quarter of 2021.