Case Study:

Asset Sale

AggieTech Operating, LLC

Business Description:

AggieTech Operating, LLC, based in Midland, Texas, is a leading developer and operator of seven high-quality, high-capacity strategically located Class II licensed salt water disposal well facilities in the Permian Basin.


Challenge:

The primary sponsors and owners had additional salt water disposal well aseets they desired to develop, however, capital was limited. In conjunction with them, we determined they either needed to find a capital partner with substantial resources or sell the assets to a larger strategic buyer. Further, there were over 20 unique working interest owners, which created additional complexities as it related to deal execution.


Solution:

The owners engaged us as merger & acquisition sell-side advisor to broadly test the market with both private equity groups and strategic buyers. We aggressively marketed the assets and solicited interest from a number of qualified parties and negotiated favorable terms with Oilfield Water Logistics (OWL), which was backed by Natural Gas Partners and NGP Energy Technology Partners. The AggieTech team will join OWL and become responsible for OWL's Permian Basin operations.  We worked through the unique challenges to achieve a successful asset sale. All owners received a favorable return on investment and we surpassed the AggieTech team's goals and expectations.