On July 1, 2016, J-W Energy Company closed on the sale of substantially all of the oil and gas assets owned by J-W Operating Company and substantially all of the midstream assets owned by J-W Midstream Company to affiliates of Aethon United LP.
The assets included in the transaction are located mainly in the North Louisiana and North Texas areas and are comprised of approximately 95,000 net acres and 380 miles of associated gathering and processing infrastructure.
The sale is an exit from the upstream and midstream business by J-W Energy Company, which will continue to own the largest privately-held compression fleet in the US through its wholly-owned subsidiary, J-W Power Company. Over the past ten years, J-W Energy has exited from its drilling, valve manufacturing, gas measurement and wireline businesses as well, as part of a planned reallocation of company resources.
"This exit from the upstream and midstream businesses will allow J-W Energy Company to focus on our compression business, which has been less capital intensive than the upstream and midstream businesses," said David A. Miller, president of J-W Energy Company.
In the July 2016 issue of Oil & Gas Financial Journal, J-W Operating ranked No. 14 on the OGFJ100P, a list of privately-held exploration and production companies ranked by operated production within the US.
Wells Fargo Securities LLC served as the exclusive financial advisor to J-W Energy on the transaction.