Northern Oil and Gas’s $406.5 Million Acquisition of Veritas’ Permian Basin Assets

Willkie represented Veritas Energy and Carnelian Energy Capital Management in the transaction. Kirkland & Ellis counseled Northern Oil and Gas.

Veritas Energy and Carnelian Energy Capital Management executed the sale of substantially all of Veritas’s non-operated Permian Basin assets to Northern Oil and Gas for a cash purchase price of $406.5 million. The assets are primarily located in Lea and Eddy counties, NM, and Loving, Reeves, Ward and Winkler counties, TX.

As part of the transaction, Northern will also issue Veritas ~1.9 million seven-year equity warrants with a strike price of $28.30 at closing.

Veritas, an independent oil and natural gas company based in Fort Worth, Texas, with equity financing from affiliates of Carnelian Energy Capital Management, L.P. and Old Ironsides Energy, LLC and from the Veritas management team, is focused on leasing, developing and operating oil and gas properties, primarily in the Permian Basin.

Carnelian Energy Capital is an energy investment firm based in Houston, Texas. With approximately $1.8 billion of cumulative equity commitments, Carnelian is dedicated to bringing its strategic expertise and nimble approach to partnerships with leading businesses and best-in-class management teams in the North American energy space. 

The Willkie team was led by partners Steven Torello (Picture) and Michael De Voe Piazza and included partner Jeffrey Hochman and associate Lynn Abell.

The Kirkland team was led corporate partners David Castro Jr. and Rahul Vashi and associates Will Eiland, Matt Gibson, Clayton Hart, Jonathan Strom and Braxton Smith; tax partner Mark Dundon; capital markets partners Matt Pacey and Bryan Flannery and associate Ieuan Adrian List; debt finance partners Will Bos and Mary Kogut and associate Laura Bielinski; and environmental transactions partner Jon Kidwell and of counsel Jennifer Cornejo.

Involved fees earner: Laura Bielinski – Kirkland & Ellis; William Bos – Kirkland & Ellis; David Castro – Kirkland & Ellis; Jennifer Cornejo – Kirkland & Ellis; Mark Dundon – Kirkland & Ellis; William Eiland – Kirkland & Ellis; Bryan Flannery – Kirkland & Ellis; Matt Gibson – Kirkland & Ellis; Clayton Hart – Kirkland & Ellis; Jonathan Kidwell – Kirkland & Ellis; Mary Kogut Brawley – Kirkland & Ellis; Ieuan List – Kirkland & Ellis; Matthew Pacey – Kirkland & Ellis; G. Braxton Smith – Kirkland & Ellis; Jonathan Strom – Kirkland & Ellis; Rahul Vashi – Kirkland & Ellis; Lynn Abell – Willkie Farr & Gallagher; Michael De Voe Piazza – Willkie Farr & Gallagher; Jeffrey Hochman – Willkie Farr & Gallagher; Steven Torello – Willkie Farr & Gallagher;

Law Firms: Kirkland & Ellis; Willkie Farr & Gallagher;

Clients: Carnelian Energy Capital Management, L.P.; Northern Oil and Gas, Inc.; Veritas Energy;