Press Release

Kirkland Advises Stronghold on Sale of its Permian Basin Assets to Ring Energy

Kirkland & Ellis counseled privately-held Stronghold Energy II Operating, LLC and Stronghold Energy II Royalties, LP, on the agreement to sell Permian Basin assets to Ring Energy, Inc. (NYSE American: REI). Stronghold’s operations are located primarily in Crane County, Texas and focused on the development of approximately 37,000 net acres in the Permian Basin’s Central Basin Platform. Stronghold is majority owned by Warburg Pincus, LLC, a leading growth investor. Consideration for the Transaction, subject to customary closing adjustments, consists of: $200 million in cash at closing; $15 million deferred cash payment due six months after closing; $20 million of existing Stronghold hedge liability; and $230 million in Ring equity based on a 20-day volume weighted average price of $3.60 per common share as of June 30, 2022, all of which will be issued to the owners of Stronghold.

Read Ring Energy’s press release

The Kirkland team was led by corporate partners Adam Larson and Rahul Vashi and associates Alia Heintz and Lauren Stelck, capital market partners Julian Seiguer and Matthew Turner, tax partner Mark Dundon, environmental transactions partner Jonathan Kidwell, and debt finance partner Will Bos.