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28 Jun 2019 07:00
Riverstone Energy Limited Announces US$100 million Vaca Muerta Midstream Commitment
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London, UK (28 June 2019). Riverstone Holdings LLC ("Riverstone"), the Manager of Riverstone Energy Limited ("REL"), has announced the signing of an agreement for REL to invest in Aleph Midstream S.A. ("Aleph"), an independent Argentine oil and gas gathering and processing-focused midstream company, in line with REL's previously-stated modified investment approach.
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Aleph has received a US$103 million commitment from funds affiliated to Riverstone (comprising US$100 million from REL and US$3 million from other investors) alongside commitments of US$54 million from Southern Cross Group, US$45 million[1] from Vista Oil & Gas ("Vista"), and approximately US$3 million from the Aleph and Vista management teams, for a total commitment of approximately US$205 million, expected to be deployed over the next 24 months.
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Aleph will become the first midstream player focused on providing gathering, processing and evacuation services for oil and gas production of Argentina's Vaca Muerta shale play, spearheading a new paradigm for the development of this world-class shale play built on the concept of long-term partnerships with upstream-focused producers underpinned by acreage dedication agreements.
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Upon closing of the transaction, expected to occur in July 2019, Aleph plans to start funding the construction of infrastructure necessary to provide gathering, processing, and evacuation midstream services to oil and gas producers in Vaca Muerta. Starting in January 2020, Aleph plans to begin providing certain midstream services to support Vista's Bajada del Palo Oeste shale development in Vaca Muerta, as well as its existing conventional and future unconventional production in the Neuquina Basin, under a dollar-denominated long-term contract. Aleph is currently negotiating credit facilities which it expects to close within the third quarter of 2019.
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Aleph plans to draw upon Riverstone's successful track record building independent midstream businesses across North America to serve growing production from unconventional developments. Riverstone and its affiliates have a strong track record of safely and profitably developing and managing midstream assets, with an aggregate of US$6.9 billion committed to 23 midstream investments[2] since inception, including recent investments in onshore unconventional-focused gathering and processing assets via its Meritage and Lucid platforms. Aleph will also leverage the local expertise of Southern Cross Group and Vista. Southern Cross Group is one of the largest and longest-standing Latin America-focused private equity firms, and Vista possesses some of the top operational and technical capabilities in the Neuquina Basin.
About Vista Oil & Gas S.A.B. de C.V. (BMV: VISTAA):
Vista is a Latin American E&P company listed on the Mexican Stock Exchange, with producing conventional and unconventional assets in Argentina and Mexico. Its main operation is in the Neuquina Basin and Vaca Muerta, a world class shale play. The company is led by Miguel Galuccio, Chairman and CEO, along with a team of experienced executives from the oil and gas industry. Vista is executing its development plan targeting a production of 65,000 barrels of oil equivalent per day by 2022.
For further details, see www.vistaoilandgas.com/Ā
About Southern Cross Group:
Southern Cross is one of the largest and longest-standing Latin America-focused private equity firms, founded in 1998 to make value-oriented investments in the region that have significant potential for improved performance and growth. The Southern Cross team is comprised of 30 professionals including a senior team with almost 200 years of operating, consulting, M&A, capital markets, turnaround and private equity experience in the region and is one of the pioneers of private equity in Argentina with more than 20 years investing in the country. Southern Cross is currently investing its fifth fund, which has US$700 million in commitments.
For further details, see http://www.southerncrossgroup.com/Ā
About Riverstone Energy Limited:
REL is a closed-end investment company that invests exclusively in the global energy industry across all sectors. REL aims to capitalize on the opportunities presented by Riverstone's energy investment platform. REL is a member of the FTSE 250 and its ordinary shares are listed on the London Stock Exchange, trading under the symbol RSE. REL has 12 active investments spanning oil and gas, energy services, and power in the Continental U.S., Western Canada, Gulf of Mexico and Europe.
For further details, see www.RiverstoneREL.com
About Riverstone Holdings LLC:
Riverstone is an energy and powerāfocused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately US$39 billion of capital raised. Riverstone conducts buyout and growth capital investments in the E&P, midstream, oilfield services, power, and renewable sectors of the energy industry. With offices in New York, London, Houston, and Mexico City, Riverstone has committed over US$39 billion to more than 180 investments in North America, Latin America, Europe, Africa, Asia, and Australia.
For further details, see www.RiverstoneLLC.comĀ
Neither the contents of Riverstone Energy Limited's, Riverstone Holdings', Vista's, nor Southern Cross Group's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.
Media Contacts
For Riverstone Energy Limited:
Brian Potskowski
Natasha Fowlie
+44 20 3206 6300
[1] Vista expects to contribute substantially all of its midstream assets located in the Neuquina Basin valued at approximately US$45 million.
[2] Figures as of March 31, 2019 including co-investments.
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