American Energy’s Utica, Marcellus units to merge

Jan. 8, 2015
American Energy–Utica LLC (AEU) and American Energy–Marcellus LLC (AEM), both affiliates of American Energy Partners LP (AELP), will merge in an all-stock transaction. 

American Energy–Utica LLC (AEU) and American Energy–Marcellus LLC (AEM), both affiliates of American Energy Partners LP (AELP), will merge in an all-stock transaction.

AEU and AEM will remain wholly owned subsidiaries of AEA and their existing debt and convertible debt securities remain unaffected.

The merger will result in AEA operating more than 300,000 net acres in the Utica and Marcellus shales in eastern Ohio and northern West Virginia. AEU says the deal was made because of the complementary nature of the respective company’s acreage.

During the quarter ended Sept. 30, 2014, AEA had estimated proved reserves of 1.5 tcfe, of which 77% was gas, and estimated daily production of 167 MMcfe, of which 79% was gas.

Both companies in August closed on acquisitions in their respective plays totaling $1.75 billion (OGJ Online, Aug. 8, 2014).

AEA's equity owners are The Energy & Minerals Group, First Reserve, and other institutional investors and management.