SM Energy Company, a Denver-based oil and gas company, recently acquired Rock Oil Holdings LLC, a Houston and Denver-based oil and gas company focused on the Permian Basin, for $980 million. Rock Oil Holdings was sold by Riverstone Global Energy and Power Fund V.L.P. and their minority partners. Riverstone Holdings LLC made the news public after signing a definitive agreement pursuant to the acquisition of Rock Oil Holdings LLC by SM Energy Company. Subject to customary closing conditions, the transaction is anticipated for closure in early October.
By applying its land and technical expertise, Rock Oil Holdings was formed in March 2014 for the acquisition and advancement of top-tier North American unconventional plays. Over the years, the company has executed a number of acquisitions which positions it over 24,783 net acres in Permian’s Midland Basin Component.
The company is led by two very exceptional leaders who have had past experiences in the exploration and production companies. Kyle R. Miller, the Chief Executive Officer of Rock Oil, has had years’ worth of experience in the industry and the president, Jason Cansler, has had fifteen years’ worth of experience with Wells Fargo and Chevron. The company’s CEO mentions his pride in the company’s commendable achievement in establishing its presence in the core of the leading production basin in North America. Rock Oil Holdings continues to overcome despite the challenging commodity price environment due to the innovativeness of the Rock Oil Team and the symbiotic relationship with Riverstone Holdings LLC.
A partner and Managing Director at Riverstone stated that the relationship between their company and Rock Oil Holdings was very beneficial and commends on Kyle Miller and Jason Cansler’s impressive leadership abilities. He mentions that the company’s success was facilitated by its wealth and technical expertise in assembling top acreage in Howard Country. All these and many other factors go a long way to show how promising it is for the future of SM Energy Company. The transaction went through with Jefferies serving as the financial advisor of Rock Oil and Riverstone Holdings LLC. Other financial advisors who played a role in the transaction include Petrie Partners and Latham & Watkins LLP.
The company was founded by David M. Leuschen and Pierre F. Lapeyre, Jr. in 2000. It is an energy and power-focused privately owned firm, with over $34 billion in capital raised for the efforts of this venture, the company carries outgrowth capital investments and buyout in oilfield services, exploration and production, midstream, power and renewable sectors of the energy industry.