Benchmark’s existing assets consist of over 13,000 net acres primarily located in Roberts and Hemphill Counties in Texas, and an interest in over 125 wells, the majority of which are operated
Acacia Research acquires majority stake in Benchmark Energy. (Credit: Simon J from Pixabay)
Acacia Research Corporation (Nasdaq: ACTG) (“Acacia” or the “Company”) announced that it has acquired a majority interest in Benchmark Energy II, LLC (collectively with its affiliates, “Benchmark”). Headquartered in Austin, TX, Benchmark is an independent oil and gas company engaged in the acquisition, production and development of oil and gas assets in mature resource plays in Texas and Oklahoma. Benchmark is run by an experienced management team led by Chief Executive Officer Kirk Goehring, who previously served as Chief Operating Officer of both Benchmark and Jones Energy, Inc. Benchmark’s existing assets consist of over 13,000 net acres primarily located in Roberts and Hemphill Counties in Texas, and an interest in over 125 wells, the majority of which are operated.
Acacia has made a control investment in Benchmark and intends to utilize its significant capital base to acquire predictable and shallow decline, cash-flowing oil and gas properties whose value can be enhanced via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage. Under the terms of the transaction, McArron Partners (“McArron”), Benchmark’s existing lead investor, retains its investment in Benchmark and plans to commit additional capital to support growth.
Martin (“MJ”) D. McNulty, Jr., Acacia’s Interim Chief Executive Officer, commented: “We are excited to be partnering with Kirk, Jonny Jones of McArron Partners and team in this transaction. We have been enthusiastic about the strategy of acquiring producing oil and gas assets at attractive valuations for quite some time. When Kirk and Jonny approached us about this partnership, it became clear that now is the right time to pursue this strategy. Benchmark’s existing assets are well-known, high-quality assets with attractive return profiles. The Benchmark team has a demonstrated track record of value creation across market cycles, and we look forward to growing the business together.”
Mr. Goehring added: “Acacia has a deep understanding of our business and is the right long-term partner to support Benchmark’s continued growth. We look forward to working with MJ and the Acacia team, with whom we have a strong previous relationship, to unlock substantial value for all stakeholders. This new partnership will allow Benchmark to pursue larger, accretive acquisitions and drive value in our existing operations.”
Source: Company Press Release