ARM Energy Holdings LLC and its partners have sold Kingfisher Midstream LLC to Silver Run Acquisition Corp. II in exchange for an aggregate consideration of up to $1.55 billion. The transaction consideration is composed of $800 million in cash, approximately $550 million in Silver Run II stock and up to $200 million in additional Silver Run II stock based upon future Silver Run II trading performance, subject to customary closing adjustments.
Kingfisher has natural gas processing capacity of 350 mmcf/d and more than 400 miles of natural gas and crude oil pipelines. Kingfisher’s strategic firm transportation also provides residue solutions and flow assurance to its producer customers.
The acquisition follows Silver Run II’s recent completion of its $3.8 billion business combination with Alta Mesa Holdings LP and Kingfisher. The new company is being renamed Alta Mesa Resources Inc.