Citizen Energy Continues Midcontinent Success with Accretive Consolidation

TULSA, Okla.–(BUSINESS WIRE)–Tulsa-based Citizen Energy announced that it has completed the acquisition of substantially all of the oil and gas properties of Red Bluff Resources and Bricktown Energy with an effective date of April 1, 2022.

The acquisition will generate an 18% increase in daily production for Citizen and includes approximately 13,000 additional BOEPDs (56% liquids), 200 operating wells and 739 non-operating wells. Citizen’s current position of ~245,000 net acres coupled with the Sellers’ net position of ~80,000 net acres will create a dominant mid-continent footprint.

Pro forma for the acquisition, Citizen’s assets will include approximately 86,000 BOEPDs, over 720 operating wells, over 326,000 net acres (98% HBP) ​​and an expected next twelve month EBITDAX of approximately 750 to $800 million. Citizen expects the acquisition to be highly accretive to shareholders and puts Citizen on a trajectory to become one of the leading private producers in the United States

Baker Botts served as legal counsel for the purchasers. Kirkland & Ellis served as legal advisor and JPMorgan served as exclusive financial advisor to the sellers.

Debt financing

Concurrent with the Acquisition, the Company announced the closing of $250 million of Senior Secured Second Lien Notes (the “Notes”) on June 29, 2022 due June 29, 2027. The Company used the net proceeds of the notes to fund the acquisition and to repay borrowings under the Company’s revolving credit facility. The Company secured financing for the transaction from certain private funds managed by EIG, a provider of institutional capital throughout the energy value chain.

The Company also announced an amendment to its senior secured revolving credit facility with JPMorgan Chase Bank, NA, as administrative agent, and a syndicate of 14 lenders. The borrowing base and selected commitment amounts under the facility were increased from $850 million to $1 billion as part of the acquisition.

About Citizen

Citizen Energy is an integrated oil and gas company engaged in the acquisition, development, production, exploration and sale of crude oil and natural gas properties located in Oklahoma, primarily targeting the Meramec and Woodford Shale formations . In addition to its upstream properties, Citizen operates approximately 213 miles of natural gas gathering pipelines, 225 MMcf/d of gas processing capacity and approximately 103 miles of water gathering pipelines (“midstream properties”).

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