Henderson & Erickson, based in Midland, Texas, is a leading developer and operator of high-quality, high-capacity strategically located Class II licensed salt water disposal well facilities in the Permian Basin. The transaction included seven operating wells, multiple permits and surface leases related to future development projects and various over-riding royalty interests.
The owners had additional salt water disposal well assets they desired to develop; however, capital was limited. We determined that partnering with a large capital provider specializing in the energy sector could provide the necessary support for future development. There were five primary complexities to overcome:
We were engaged by Henderson & Erickson as the merger & acquisition sell-side advisor to broadly test the market with both private equity groups and strategic buyers. With a lot of persistence over a three year period, we solicited interest from a number of qualified parties and negotiated favorable terms with On Point Energy Partners, which was sponsored by White Deer Energy, a large energy focused private equity group. We worked through the unique challenges and structural complexities to achieve an successful asset sale. All owners enjoyed a very favorable return on investment.