Magnolia Oil & Gas Corp., Houston, agreed to acquire substantially all of the South Texas assets of Harvest Oil & Gas Corp. in a cash and stock deal worth $191 million.
The deal adds 15 net locations to Magnolia’s core Karnes County inventory and 114,000 net acres to its Giddings field position. The assets produced 4,800 boe/d in the first half of this year—1,400 boe/d in Karnes County (69% oil, 83% liquids) and 3,400 boe/d in Giddings field (27% oil, 53% liquids).
“Harvest represented our largest non-operated working interest owner and the assets are a natural fit for Magnolia,” said Magnolia Chairman and Chief Executive Officer Steve Chazen.
Magnolia was created earlier this year following EnerVest Ltd.’s $2.66-billion sale of South Texas assets to TPG Pace Energy Holdings, an energy-focused special purpose acquisition entity led by Chazen (OGJ Online, Mar. 20, 2018).
The transaction includes $135 million in cash and 4.2 million newly issued shares of stock valued at about $56 million as of the close of trading on Aug. 20. Magnolia will use a combination of cash and borrowings under its revolving credit facility to fund the cash portion of the deal, which is expected to close on Aug. 31.
