Kirkland Counsels QLCP on New Partnership With Devon Energy

Kirkland & Ellis advised QL Capital Partners, LP (QLCP) on its decision to create a new partnership with Devon Energy Corporation (NYSE:DVN) to fund selected gas gathering and compression assets owned by Devon in Devon’s highly productive “Cotton Draw” development area within the Delaware Basin. As part of the transaction, Devon will contribute its existing gas gathering and compression infrastructure within an area of mutual interest to Cotton Draw Midstream, LLC, a newly formed partnership which Devon will continue to operate pursuant to a management services agreement.  Devon will dedicate to the partnership approximately 24,000 gross upstream acres for gathering and compression on the partnership’s system.  QLCP will fund a $100 MM distribution to Devon, and will also fund the majority of incremental Partnership capital to build out the Cotton Draw midstream assets over the next several years.

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The Kirkland team was led by transactional partners John Pitts and Cyril Jones and associates Erik Shoemaker and Mark Kunzman; transactional partner Chad Smith and associate Isaac Bate; and tax partners David Wheat and Bill Dong.