[Context:On January 10, Northwoods Energy announced a $850m equity commitment from Apollo Global and a $500m deal to acquire Powder River assets from SM Energy. Further details and related links are below.]


Northwoods EnergyApollo Global

Northwoods Energy, a Portfolio Company of Funds Affiliated with Apollo Global Management, Announces Its Acquisition of SM Energy’s Powder River Basin Assets for $500 Million

DENVER & NEW YORK–January 10, 2018–(BUSINESS WIRE)–Northwoods Energy LLC (“Northwoods” or the “Company”) (formerly known as Converse Energy), a portfolio company of certain funds managed by affiliates of Apollo Global Management, LLC (NYSE:APO) (“Apollo”), today announced it has agreed to acquire SM Energy’s core Powder River Basin assets. The acquisition is comprised of over 112,200 predominantly contiguous net acres of leasehold in Converse, Campbell, and Johnson counties in Wyoming.

Northwoods is led by Chief Executive Officer Tom Tyree, who has extensive experience in the acquisition and development of upstream oil and gas properties in the Rocky Mountains, Marcellus Shale, and Barnett Shale. Mr. Tyree was Co-Founder, President, and CFO of Vantage Energy from 2006 to 2016. He is currently on the board of directors of Bonanza Creek Energy and served as CFO of Bill Barrett Corporation prior to Vantage Energy. The Apollo funds, including Apollo Investment Fund VIII and Apollo Natural Resources Partners II, have committed to invest up to an aggregate of $850 million in Northwoods.

Mr. Tyree said, “Northwoods is excited to be working with Apollo to build a leading Powder River Basin-focused independent E&P business. We believe the basin has some of the best geology of any play in the Lower 48 and that Northwoods has a tremendous opportunity to develop this highly contiguous, core acreage position.”

Geoff Strong, Senior Partner at Apollo, said, “We look forward to working with Tom as Northwoods seeks to become a best-in-class Powder River Basin operator. Northwoods’ acreage position creates a solid foundation from which the Company can build significant scale in the region.”

Tudor, Pickering, Holt & Co. advised the buyer. Vinson & Elkins acted as legal advisor to the buyer.