Family office-led consortium buys PureWest
Executive team, employee base remain in place
DENVER – PureWest Energy, LLC (“PureWest” or the “company”), a leading Rocky Mountain independent natural gas producer, announced completion May 31 of an all-cash merger with a newly formed entity sponsored by a private consortium of family offices and financial institutions (“PW Consortium”) for a total consideration of $1.84 billion.
Following the closing of the transaction, PureWest’s existing management and employees will remain in place, a new board of directors will be formed composed of representatives from PW Consortium and the entity will remain branded as PureWest Energy, LLC.
Chris Valdez, PureWest CEO, commented, “Since its inception, PureWest has achieved a remarkable series of accomplishments. Our team has successfully consolidated operations on the Pinedale Anticline, showcasing a sustainable inventory runway. Moreover, we have positioned our brand as a prominent market leader in low methane certified gas and earned recognition as the best workplace in Denver. We are thrilled about our partnership with the new equity consortium, which will further fortify the robust platform we have established.”
Ty Harrison, PureWest president and CFO, added, “This transaction strategically positions PureWest for sustainable long-term value creation by leveraging its unique capital structure, which includes family office equity and securitized debt. The company plans to increase its high-margin production through development, as well as execute its differentiated gas strategy.”
Members of PW Consortium include A.G. Hill Partners LLC, Cain Capital L.L.C., Eaglebine Capital Partners, LP, Fortress Investment Group, HF Capital, LLC, Petro-Hunt LLC and Wincoram Asset Management.
As part of the transaction, the company closed on a third asset-backed securitization. The offering featured $200 million of notes offered and sold as a 4(a)(2) private placement (the “Notes Offering”). The notes were investment grade rated by an NRSRO. Additionally, as part of the transaction, the company has closed on a divestiture of producing wellbores to investment vehicles managed by Wincoram Asset Management.