Categorized | Energy Investment

SM Energy Signs Agreement to Acquire Rock Oil from Riverside Holdings LLC

Posted on 10 August 2016

Riverside Holdings LLC is an international investment firm known in the gas and oil industry to build and expand companies. The management team at Riverside built and grew Rock Oil by providing capital and managing its assets. SM Energy, a gas and oil company in Denver, CO acquired the oil and gas company for $980 million. Rock Oil has locations in Denver and Houston, TX, and has only been in business for two years using knowledge to acquire and develop oil assets in North America. While under asset management by Riverside Holdings, the oil & gas company acquired over 24.7 thousand acres in Midland Basin.

Before signing the acquisition agreement, Rock Oil had already began creating a development program in Howard County, TX. The finalization of the agreement between SM Energy and Riverside Holdings is expected to close sometime in October of this year. Kyle R. Miller serves as the Chief Executive Officer and Chairman of Rock Oil, an exploration & production company managed by Riverside Holdings. He successfully created value of the company and continues to concentrate on Permian Basin and Utica Shale in North America. The Rock Oil’s managing team built a huge acreage position and production in Eagle Ford Shale, which was sold to Sabine Oil & Gas and Sanchez Energy Corporation.

The sale agreement details terms of the acquisition, including Riverside Energy Limited turning over 100 percent interest of Rock Oil. According to Riverside, the company invested $114 million and will realize nearly $237 million in gross cash proceeds. The cash proceeds realization represents a $123 million gain and 55 percent over its current value of $152 million, as of June 30th, 2016. Riverstone Global Energy & Power Fund V, L.P. and interested partners agreed to the terms of the acquisition agreement, on August 8th, 2016. At October closing, the agreement may be subjected to additional terms and modification of conditions.

Riverstone Holdings is an investment firm that concentrates in the energy and power industry. The firm was co-founded by David Leuschen and Pierre F. Lapeyre, Jr., in 2000. The co-founders accomplished raising $32 billion during the startup process and is now responsible for managing $80 billion in investments for companies in assets exploration & production, coal & power, renewable energy, and energy service sectors. Since 2015, Riverside has committed to providing capital to Meritage Midstream Services III, Three Rivers III, and Rover Petroleum, LLC. Riverstone has a track record of building and expanding growth of oil & gas companies in global markets.

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