Chesapeake’s $2.2 Billion Acquisition of Vine Energy

Latham & Watkins LLP and Richards Layton & Finger advised Chesapeake, while Kirkland & Ellis LLP advised Vine. Weil, Gotshal & Manges LLP advised Blackstone on the deal.

Chesapeake Energy Corporation (NASDAQ:CHK) and Vine Energy Inc. (NYSE:VEI) have entered into a definitive agreement pursuant to which Chesapeake will acquire Vine, an energy company focused on the development of natural gas properties in the over-pressured stacked Haynesville and Mid-Bossier shale plays in Northwest Louisiana. The acquisition is a zero premium transaction valued at approximately $2.2 billion, based on a 30-day average exchange ratio as of Tuesday’s close, equating to $15.00 per share.

Headquartered in Oklahoma City, Chesapeake Energy Corporation’s operations are focused on discovering and responsibly developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States.

Vine Energy Inc., based in Plano, Texas, is an energy company focused on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana.

Latham & Watkins LLP represented Chesapeake Energy in the transaction with a Houston-based team led by partners Bill Finnegan (Picture) and Kevin Richardson, with associates Thomas Verity, Bryan Ryan, Jordan Mack, Ben Marek, and Austin Johnson. Advice was provided on energy and infrastructure matters by Houston partner Michael King; on tax matters by Houston partners Tim Fenn and Jim Cole, with associate Christine Mainguy; on benefits and compensation matters by Washington, D.C. partner Adam Kestenbaum, with associate Courtney Thomson; on environmental matters by Houston partner Joel Mack and Los Angeles/Washington, D.C. counsel Joshua Marnitz; on finance matters by Houston partner Craig Kornreich and counsel Natalie McFarland, with associate Whitley Johnson; on antitrust matters by Washington, D.C. partner Jason Cruise, with associate Doug Tifft. Chesapeake Energy’s legal team was led by Ben Russ.

The Kirkland team was led by corporate partners Andy Calder, Doug Bacon and Bill Benitez and associates Josh Teahen and Patrick Salvo; capital markets partner Michael Rigdon; debt finance partner Andy Veit; tax partner Mark Dundon; executive compensation partner Rob Fowler; and oil & gas partner Rahul Vashi.

Weil advised Blackstone Energy Partners, as 70% stakeholder in Vine Energy, with a team led by Mergers & Acquisitions partner Raymond Gietz and Private Equity partner Jeff Malonson and included Mergers & Acquisitions associate Joseph Cho and Private Equity associate Scott Bailey. The team also included International Tax Head Devon Bodoh; Tax associate Nikolai Karetnyi; and Antitrust partner Vadim Brusser.

Involved fees earner: Douglas Bacon – Kirkland & Ellis; William Benitez – Kirkland & Ellis; Andrew Calder – Kirkland & Ellis; Mark Dundon – Kirkland & Ellis; Robert Fowler – Kirkland & Ellis; Michael Rigdon – Kirkland & Ellis; Patrick Salvo – Kirkland & Ellis; Joshua Teahen – Kirkland & Ellis; Rahul Vashi – Kirkland & Ellis; Andy Veit – Kirkland & Ellis; Jim Cole – Latham & Watkins; Jason Cruise – Latham & Watkins; Timothy Fenn – Latham & Watkins; William Finnegan – Latham & Watkins; Austin Johnson – Latham & Watkins; Whitley Johnson – Latham & Watkins; Adam Kestenbaum – Latham & Watkins; Michael King – Latham & Watkins; Craig Kornreich – Latham & Watkins; Jordan Bartley Mack – Latham & Watkins; Joel Mack – Latham & Watkins; Christine Mainguy – Latham & Watkins; Benjamin Marek – Latham & Watkins; Joshua Marnitz – Latham & Watkins; Natalie McFarland – Latham & Watkins; Kevin Richardson – Latham & Watkins; Bryan Ryan – Latham & Watkins; Courtney Thomson – Latham & Watkins; Doug Tifft – Latham & Watkins; Thomas Verity – Latham & Watkins; Scott Bailey – Weil, Gotshal & Manges; Devon Bodoh – Weil, Gotshal & Manges; Vadim Brusser – Weil, Gotshal & Manges; Joseph Cho – Weil, Gotshal & Manges; Raymond Gietz – Weil, Gotshal & Manges; Nikolai Karetnyi – Weil, Gotshal & Manges; Jeff Malonson – Weil, Gotshal & Manges;

Law Firms: Kirkland & Ellis; Latham & Watkins; Weil, Gotshal & Manges;

Clients: Blackstone Energy Partners; Chesapeake Energy Corporation; Vine Energy;

Martina Bellini

Author: Martina Bellini