Kirkland Counsels Encino in Obtaining Underwritten Financing in Connection with its Planned $2 Billion Acquisition of Oil and Gas Assets

Kirkland & Ellis LLP advised Encino Acquisition Partners (EAP) in obtaining underwritten financing from a syndicate of financial institutions in connection with its entry into an agreement to acquire all of Chesapeake Energy's Utica Shale oil and gas assets in Ohio for a total consideration of US$2 billion in cash.

Canada Pension Plan Investment Board (CPPIB) and Encino Energy (Encino) formed EAP in 2017 to acquire large, high-margin oil and gas production and development assets in the U.S. lower 48 states. In support of this acquisition, CPPIB will invest approximately US$1.0 billion in EAP and will own approximately 98 percent of the partnership. Houston-based Encino will invest in EAP alongside CPPIB and will operate the acquired assets on behalf of EAP. Together, EAP's owners plan to build a large, well-capitalized independent E&P company. Encino’s full release is available here.
 
The Kirkland team was led by debt finance partners Will Bos and Andy Veit and associate Chad Nichols; and capital markets partner Matt Pacey.