Oil & Gas Producer Makes $600,000,000 Through Midstream Joint Venture

Midstream Negotiations

Situation

An oil and gas producer was in the process of negotiating a large acreage dedication with a midstream provider. The producer engaged AEGIS to review the contract and identify opportunities for additional participation.

Solution

AEGIS identified and negotiated a joint venture structure. The producer was able to participate with 40% equity in the midstream asset in exchange for its acreage dedication.

Outcome

After 18 months, the midstream company monetized the asset for $1.5 billion. The producer received ~$600mm in proceeds related to its 40% equity stake.

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