Sentinel Peak Resources’ Acquisition of Seneca’s California Oil and Gas Assets

Kirkland & Ellis counseled National Fuel Gas Co. on the deal.

National Fuel Gas Co. (NYSE:NFG) announced the divestiture of Seneca’s California oil and gas assets to Sentinel Peak Resources California LLC for total consideration between $280 million and $310 million, depending on oil prices, and subject to customary closing adjustments. The consideration consists of $280 million in cash at closing, plus up to three annual contingent payments between calendar years 2023 and 2025 that can total $30 million in aggregate. The transaction has an effective date of April 1, 2022 and is expected to close on June 30, 2022, subject to customary closing conditions (including waivers of certain transfer restrictions).

National Fuel Gas Company distributes and transports natural gas to hundreds of thousands of customers in Western New York and Northwestern Pennsylvania.

Sentinel Peak Resources is a Denver based Quantum Energy Partners portfolio company focused on acquisition, development, and exploration of oil and gas assets, primarily focusing on heavy oil development in California.

Lazard Capital served as financial advisor in connection with the transaction.

The Kirkland team was led by corporate partners David Castro Jr. (Picture) and Chad Smith and associates Will Eiland and Jonathan Strom; environmental transactions partner Jon Kidwell and of counsel Jennifer Cornejo; and tax partner David Wheat and associate David Gilbert. 

Involved fees earner: David Castro – Kirkland & Ellis; Jennifer Cornejo – Kirkland & Ellis; William Eiland – Kirkland & Ellis; David Gilbert – Kirkland & Ellis; Jonathan Kidwell – Kirkland & Ellis; Chad Smith – Kirkland & Ellis; Jonathan Strom – Kirkland & Ellis; David Wheat – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: National Fuel Gas Company;