Oklahoma City-based BCE-Mach III LLC recently signed a purchase and sale agreement to acquire producing properties in western and southern Oklahoma and the Texas panhandle from Cimarex Energy. The acquisition, expected to close in June 2021, also includes two gas gathering and processing assets located in southern Oklahoma.
BCE-Mach III LLC was formed in early 2020, and in April 2020 the company acquired the upstream and midstream assets from Alta Mesa Holdings LP and Kingfisher Midstream LLC, which are primarily located in Kingfisher County, Oklahoma. In total, Bayou City Energy Management LLC (BCE) and Mach Resources LLC (Mach) have made eight separate acquisitions since 2018 across the three BCE-Mach portfolio companies (collectively BCE-Mach).
“We continue to have success adding to our holdings in the Mid-Continent region,” said CEO Tom Ward in a May 17 company statement. “As a result of our scale in the area across our platforms, we are able to bolt on an acquisition of this size with minimal incremental overhead costs. In conjunction with our team’s expertise in the region and strong financial standing, we expect to extend our acquisition successes.”
BCE-Mach has assembled an expansive upstream portfolio of Anadarko Basin assets across 46 counties in Oklahoma, Kansas and the Texas panhandle including interest in more than 7,200 producing wells (more than 3,100 operated producing wells), more than 700,000 net acres (96 percent held by production) and net production of approximately 48,000 barrels of oil equivalent per day (boe/d), 50 percent of which are liquids. Additionally, BCE-Mach owns and operates an extensive infrastructure portfolio including two fully integrated water transfer and disposal systems (about 700 miles of water pipelines and about 45 disposal wells), three gas gathering and processing systems representing about 310 million cubic feet per day (MMcf/d) of processing capacity and about 450 miles of gathering lines, about 85,000 hp compression fleet and a crude gathering system with 108 miles of pipeline and a 50,000-barrel storage facility.
“Our partnership with Mach has again resulted in owning more producing assets at attractive valuations,” said Will McMullen, BCE’s managing partner. “Generating free cash flow from our platform assets will continue as our overriding strategy. For 2021, we should exceed $200 million after accounting for all CAPEX, G&A, and debt interest expenditures, helping achieve a combined net debt to EBITDA multiple of a less than 0.25x. With this formidable financial strength, we will add to the Mid-Continent producing holdings and prudently develop the assets when appropriate. We will also evaluate applying this strategy to other basins where assets are either non-strategic to a seller or owned by unnatural holders.”
Mach is an independent oil and natural gas producer focused on acquiring, exploring and developing high-return, low-cost projects. Founded in January 2017, the company pursues assets with production history and development opportunity. Mach is headquartered in Oklahoma City, Oklahoma, with 80 corporate team members and 220 field team members across seven field offices.Tags: BCE-Mach III LLC, Cimarex Energy, mergers and acquisitions