CNX announces acquisition of Apex Energy assets
Published by Alfred Hamer,
Editorial Assistant
Oilfield Technology,
CNX Resources Corporation has announced that it has entered into a definitive agreement to acquire the natural gas upstream and associated midstream business of Apex Energy II, LLC, a portfolio company of funds managed by Carnelian Energy Capital Management, L.P., in the Appalachian Basin for total cash consideration of approximately US$505 million, subject to certain adjustments including an effective date of 1 October 2024. Completion of the transaction, which is subject to the satisfaction of customary closing conditions, is expected to occur in the 1Q25.
CNX president and CEO Nick Deiuliis stated, "This transaction represents a rare opportunity to acquire a highly complementary asset adjacent to our existing operations. It underscores our confidence in the stacked pay development opportunities that have been unlocked from pioneering the deep Utica in this region."
The acquisition strategically expands CNX's existing stacked Marcellus and Utica undeveloped leasehold in the CPA region and provides an existing infrastructure footprint that can be leveraged for future development. Additionally, CNX expects operational and other development synergies to add incremental value to the core business in the coming years.
The acquisition is expected to be immediately accretive to CNX's key metric of free cash flow per share. The attractive acquisition price and free cash flow profile of the assets allows the company to maintain its strong balance sheet and preserve significant capital allocation flexibility moving forward.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06122024/cnx-announces-acquisition-of-apex-energy-assets/
You might also like
Chevron achieves first oil at Future Growth Project in Kazakhstan
Chevron Corporation has announced that its 50% owned affiliate Tengizchevroil LLP (TCO) has started oil production at its Future Growth Project (FGP) located at the Tengiz oil field in Kazakhstan.