Mountaineer Keystone acquires PDC Mountaineer

Mountaineer Keystone Energy LLC

Mountaineer Keystone Energy LLC, a portfolio company of First Reserve, a private equity firm exclusively focused on energy, has completed the acquisition of the equity interests in PDC Mountaineer LLC (PDCM), a Marcellus joint venture (JV) between PDC Energy Inc. and Lime Rock Partners LLC, with an effective date of Jan. 1, for an aggregate purchase price of $500 million.

The acquisition adds over 131,000 net acres to Mountaineer Keystone's West Virginia Marcellus shale position, approximately 65% of which is held-by-production. Pro forma for the acquisition, the Company will have 181,000 net acres, proved reserves of nearly 650 Bcf and daily production of more than 50 Mmcfe/d.

As part of its transaction, the midstream assets of PDCM are being acquired and will be operated by MK Midstream Holdings LLC, a JV 50% owned by the company. The midstream assets consist of 24 miles of high-pressure gathering lines with capacity to transport in excess of 100 Mmcfe/d.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...